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By Benedicte Gravrand, Opalesque London:
This is the first article of a four-part series.
Investors are now seeking greater services and transparency from FoHFs. That means that larger FoHFs with the right infrastructure and technology, argues Gottex, will likely benefit from this industry trend. However, it is said that managed accounts might just be a knee-jerk reaction to last year’s shocks.
Popular in crisis
A managed account is an investment account that is owned by an individual investor and looked after by a money manager, who makes the investment decisions. The account is tailored to the specific needs of the investor. Hedge fund managed accounts have been around since the 1990s and have represented less than 2% of the hedge fund market.
But now, according to Deutsche Bank’s latest Alternative Investment Survey, 43% of investors are more likely to make a proportion of their investments through managed accounts in the future, citing liquidity, transparency and risk management benefits.
The increasing popularity of managed accounts might follow many investors’ realisation, following the rise of redemptions, gates and side pockets due to the lack of liquidity at the end of last year, that they would be much better off being in a portfolio that they control themselves rath...................... To view our full article Click here
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