Thu, Nov 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers August 2017

PERSPECTIVES: Changing investor preferences

Changing investor preferences: flows from bigger to smaller managers

This year saw a small outflow of funds from bigger managers and inflows into smaller hedge fund managers, said Duncan Crawford, head of Hedge Fund Sales team at SocieteGenerale during the Opalesque 2017 UK Roundtable.

Crawford noted that while hedge fund assets have increased from $2.3 trillion in January '08 to about $3.2 trillion assets now, much of that has gone to the bigger managers. However, investors' preference has lately been shifting towards smaller hedge fund managers and as they recognize they provide good returns, if not better compared to their much larger peers.

He said, "Institutions are clearly more comfortable with smaller hedge funds than they were when they started allocating directly. I think they have always realized that they are more likely to get higher volatility, more alpha and more diversified returns if they go for smaller managers, and perhaps, we are finally seeing that happening. I mean, it's certainly seen in the numbers at the moment. While this doesn't take us back to the days when Amplitude Capital started in 2005, it's certainly helpful."

Also fund of funds were largely been bypassed, with institutions going directly to hedge funds, and most of the flows were allocated to the biggest funds for a number of reasons such as allocating to bigger funds had the least job risk for the decision maker.

Fund managers pressed to innovate or change to stay in business

With the current market condition, there haven't been so many managers launching even at the $20m, $30m, or $50m level for some time now, Crawford said. Indeed, there are managers with a few hundred million in assets that are looking to join up with other managers, with many not......................

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. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W

  2. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  3. Investing - Six more Warren Buffett buys, including Southwest Airlines, Seth Klarman's Baupost Group bets on beaten-up health care, Roark Capital offers to buy Buffalo Wild Wings: Wall Street Journal[more]

    Six more Warren Buffett buys, including Southwest Airlines From Forbes.com: Our latest recommendation for aggressive investors is Restaurant Brands International . Hedge fund manager Bill Ackman has an incredible 40.1% of his fund at Pershing Square Capital Management invested in Restaur

  4. Investing - Tages Capital steps in to rescue Italy's Banca Carige, Hedge funds place $5.4bn bet on Toshiba's resurrection, Why outside investors are fleeing: John Paulson's 6 worst investments[more]

    Tages Capital steps in to rescue Italy's Banca Carige From TheTimes.co.uk: A little known London hedge fund has played a pivotal role in the first rescue of an Italian bank without state intervention since the country's bad debt crisis started three years ago. Banca Carige, a Genovese le

  5. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s