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

MARKETING CHALLENGE: Diane Harrison: Hark! The Allocators Sing

HARK! The Allocators Sing

2017 will be a hard year for allocators and investors to get excited about hedge fund performance versus US equities. Hedge funds returned on average about 6% in the first 11 months of 2017, significantly lagging the stock market, which was up over 20% for the same first 11 month period.

Hedge fund defenders will say that hedged portfolios are not designed to keep up with a soaring stock market, but that song often falls on stubbornly deaf ears. However, December seems a good month to remind investors why alternative investments still have a core place in every portfolio. Here are several arguments in favor of including alternatives from some of my industry articles published throughout 2017:

Jan 2017: FOCUSING ON THE FEW TO FIND RESULTS

If we assume that the overpopulated hedge fund industry has been an aggregate lackluster performer, and that this universe comprises approximately 14,000 funds, then roughly 250 or so funds existing today are providing substantial benefits to their partners. This ‘power group' generates performance regardless of what fees are being charged, what segments of the market they exploit, and what current regulations are burdening them

Feb 2017: ALTERNATIVES ARE STILL IMPERATIVES

Although not shy in voicing their frustrations and disappointment with most alternative products, investors are nevertheless more committed than ever to being invested in the sector. Perhaps they have finally truly embraced the mantra of diversification and risk modification these products are meant to provide to portfolio management. While they still want to see wholesale improvements within alternative offerings, they are believers in the long-term allocation process, and managers must work to win them.

Mar 2017: STEMMING INVESTOR REDEMPTIONS

In terms of investment management, attracting investor ca......................

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: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. Legal - Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says, Hedge fund blasts defense of Puerto Rico restructuring law[more]

    Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says From CNBC.com: A former hedge fund executive faces federal charges for defrauding a UK-based charity over investments in Africa, according to a grand jury indictment made public Wednesday.

  3. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  4. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  5. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter