Wed, Jul 1, 2015
A A A
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  4. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

  5. Qbasis gets $200m-plus investment in 'black swan' hedge fund[more]

    From Reuters.com: A hedge fund that more than doubled clients' money during the 2008 financial crisis has attracted more than $200 million from an investor aiming to cash in on fresh ructions in global markets. Qbasis Invest has secured the investment from Britain's Omada Capital, Florian Wagner, wh

 

banner