Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors want hedge funds to be cautious with their bets

Thursday, January 05, 2017

Komfie Manalo, Opalesque Asia:

The rising market volatility is seen as a great opportunity for hedge funds to create returns, but they have one main concern. Their investors, now mostly comprised of conservative pension funds and college endowments, do not want hedge fund managers to make risky bets and urge them to be cautious.

Martin Visairas, global head of capital introduction at Citigroup, told The Journal, "The institutionalization of the industry has pushed managers to rein in volatility and manage risk-taking," said Citigroup's global head of capital introduction. He added that hedge fund performance has become unstable over the past three years unlike during the previous decade.

Citigroup said that institutional investors currently account for 71% of total hedge-fund assets, compared with only 20% in 2002.

Several industry insiders added that institutional investors are demanding safer bets from their hedge fund managers, as well as more transparency and disclosure. What they don't want are high-stakes investments which hedge funds are traditionally known for.

Nicolas Rousselet, head of hedge funds at Swiss investment firm Unigestion, said: "We see investor risk appetite as very low. We don't see them willing to invest in managers taking big swings." Unigestion manages $20 billion in assets.

Roussele......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1