Thu, Sep 21, 2017
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. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3