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Komfie Manalo, Opalesque Asia:

The institutionalization of the alternative investments space has its pros and cons but it has made more it more difficult for smaller startup managers, said Peter Huber, the Global Head of Fiduciary Services at Maples Fund Services and a member of the Executive Management team during the Opalesque Cayman Roundtable.

He told participants of the Roundtable that there are a number of very large hedge fund managers in today's market who started with $5 million or $10 million and a limited, low cost infrastructure.

Huber said, "They also frequently set up Cayman-domiciled funds. When they started, their costs and barriers to entry were both relatively low and as they grew their infrastructure, they grew into their regulatory framework. Now, against the backdrop of investors’ expectations of institutional infrastructure, as well as the rising cost of regulatory compliance and downward pressure on fees, it is far more difficult to survive with a low AUM. A lot of very talented managers simply cannot afford the operating costs required to meet the demands of institutional investors."

The topic of the industrialization of the industry was brought up by Jason Allison, a partner in the investment funds group at Walkers, who noted that ......................

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