Tue, Oct 25, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers January 2012

The Analytical View
Recent research and surveys relating to emerging hedge fund managers

Of those research reports and surveys that came out in late 2011, those that retained our attention revealed that young funds had outperformed older funds in 2010; that only 10% of the US foundations which invest in hedge funds will consider investing in new managers; and that 48% of investors, overall, would invest or consider investing in emerging managers (Asian investors being the most willing). Also, a 3-year track record and $100-499m in AuM are the most popular criteria for investors. But, to end on a positive note, new managers themselves expect to achieve returns of 10% or more, and raise around $50m in 2012 each.

Young funds outperform older ones, with less Risk

Small hedge funds outperform mid-size and large funds, and young funds outperform older ones, declared PerTrac, a large provider of hedge fund analytics, in September 2011. Its report, "Impact of Fund Size and Age on Hedge Fund Performance," found that young funds (less than two years old) gained 13.25% in 2010, compared with gains of 12.65% for mid-age funds (two to four years old) and 11.77% for tenured funds (more than four years old).

Moreover, young hedge funds appear to have achieved these returns with less risk than their competitors. PerTrac suggested several possible reasons why young funds excel, including that they were able to conduct portfolio changes more quickly and "under the radar," that their less mature administrative and operational needs result in lower fixed costs, and that new technologies allow them to perform their activities more efficiently in more scalable environments. Monte Carlo simulations indicate this trend could continue in the near and intermediate future, according to PerTrac.

Only 10% of US foundat......................

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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa