Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers December 2013

News & Perspectives: Latest relevant news, views and findings

Hedge fund start-ups are competing with banks

New hedge funds have become scarcer as banks fight to retain star traders with bigger pay packages according to the Financial Times. John Griffiths, member of the regulatory compliance team at Kinetic, the consultancy, attributed the fall in new funds to investment banks ‚Äúfacing increasing competition for staff.‚ÄĚ

On the other hand, the hedge fund industry compensation rose for the 3rd consecutive year in 2013. Average compensation rose between five and ten percent, with wide categorical and performance driven disparity, and with Portfolio Managers, Senior Analysts and Risk Managers at top performing funds seeing the highest relative increases, according the latest 2014 Glocap Hedge Fund Compensation Report, released by Glocap and HFR. Emerging hedge fund managers and specialist credit managers dominate fund raising in 2013

Vantage Point, the third party fund placement group, has reported on key trends in fundraising during the second and third quarters of 2013.

One of the trends that the firm has observed is a move from larger hedge funds to emerging funds. ‚ÄúDuring the height of the financial crisis most investors moved assets to larger, presumably more stable funds. We are now seeing that trend reverse with more institutional investors dedicating a portion of their portfolio - in certain cases significant portions - to smaller, emerging hedge funds as the evidence continues to mount that funds in years one to five historically outperform their seasoned peers‚ÄĚ they write.

The definition of ‚Äėemerging manager' varies greatly by investor: from sub $1bn to sub $250m, Vantage Point observes. ‚ÄúIt is important to k......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress ó albeit slowly ó toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Wintonís low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass