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Bailey McCann, Opalesque New York:

67% of institutional investors believe active management is coming back into favor and 64% will increase their allocations to alternative investments over the next 12 months, according to the latest Context Allocator Trends Report from Context Capital Partners.

A significant portion of allocators are looking for emerging managers. Two-thirds of investors (66%) said they prefer to allocate to emerging managers (defined as those with shorter than a 3-year track record and/or less than $300 million in AUM), with more than half of investors (59%) looking for a fund that either has yet to launch or has a 1-3 year track record. In addition to emerging managers, quants are also likely to hold a long-term leadership position. A strong majority (79%) of allocators view the rise of more machine-learning and quantitative strategies as part of a long-term trend, versus the 21% that view it as a bubble.

The hunt for fresh talent also means that allocators are turning over their portfolios on a regular basis. 91% of allocators plan to turn over some percentage of their alternatives portfolio over the next 12 months. Nearly half (42%) of these allocators said the primary reason for the turnover was to further diversify their portfolio.

"We continue to see growing demand for alternative investments among a variety of institutional allocators, including family o......................

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