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B. G., Opalesque Geneva: U.S. law firm Seward & Kissel released the fourth edition of The SMA Snapshot Report last week, which provides insight into the current state of the separately managed account (SMA) environment within the hedge fund market over the past 12 months.
Among the surveyed managers, only 5% were founded less than two years ago. This demonstrates "a continuing allocation trend towards mature managers with respect to SMAs, which we first observed in our 2022 Report," the report says, as newer managers tend to offer founders classes, thus removing the need for investors to require SMA arrangements.
90% of investors into SMAs were funds (as compared to 75% in the 2023 Report) and 10% were pensions and endowments - but not HNWIs or family offices as in last year's report.
There were more SMAs with an equity-focused strategy since last year and less credit-focused strategies. This "may be due to an increased interest in certain equity strategies, such as technology, coupled with easing inflation, which may have dampened credit trade opportunities."
Furthermore, approximately half of the strategies deviated from the manager's flagship strategy "due to what appears to be inv...................... To view our full article Click here
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