Tue, Oct 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers November 2017

MARKETING CHALLENGE: Diane Harrison: Challenges Ahead in 2018

 

WHAT CHALLENGES LIE AHEAD FOR ALTERNATIVES IN 2018?

By Diane Harrison

With year-end holidays approaching and investment action wrap-up and forward planning in process, investors are bracing for change in many formats. November seems like a good time to take an industry snapshot survey of portfolio managers, wealth advisors, regulatory professionals, and the like, and ask them a single question: What do you believe is the biggest challenge faced by the alternatives industry for 2018?

The responses include some predictable answers, mostly centering on performance, performance, and more performance, typically from those individuals most concerned with delivering alpha to their constituents. However, a range of other replies prove that the alternatives industry, which includes hedge funds, private equity, mutual funds, real estate, private debt and more, has a multitude of concerns that impact the community at large.

In the area of delivering performance, a variety of comments ranged from the succinct to the detailed. Most respondents agreed that, in 2018 just as in years past, alternative managers are going to continue to be pressured to demonstrate the value-add for investors. The robust equity market environment that 2017 is enjoying will add to this pressure, requiring alternatives managers to articulate the specific benefits their investments can add to a portfolio. A sampling of the concerns raised by survey respondents included these points

There needs to be a clear justification of added alpha and dissuasion that managers are not merely taking profit from management fees and incentive fees on the back of beta in the equity markets

  • The continued discouragement of poor or mediocre returns from the industry's top funds colors overall market perception of the value in alternatives
  • The sustained buoyancy of rising equities and corresponding lack of volatility eve......................

    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. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  4. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori

  5. Investing: Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks, U.S. fund investors pull most cash from bonds since February -ICI[more]

    Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks From CNBC: Billionaire hedge fund investor Leon Cooperman confirmed to CNBC on Wednesday that he has personal money in the cannabis industry, noting investments in a few young marijuana companie