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Alternative Market Briefing Weekly

Opalesque Roundup: High net-worth investors slow long-only to explore hedge funds, alternative investments: hedge fund news, week 50

Saturday, December 15, 2018

In the week ending December 14th 2018, a survey said that 90% of high-net-worth investors are willing to invest in hedge funds and other alternative investments after having recently slowed down their (long-only) investments into stocks, bonds and mutual funds. Another survey from Deutsche Bank said that over half of the responding alternative UCITS allocators are planning to increase their allocation through September 2019. The polled investors collectively will invest $13.7bn in new capital to alternative UCITS, having already invested $9.5bn in the first three quarters of 2018.

Meanwhile the hedge fund industry was consolidating in the last quarter. A report released by Hedge Fund Research said that hedge fund liquidations exceeded launches in the third quarter of 2018 as incentive fees for new launches fell. In the third quarter 174 funds were liquidated, which compares to an estimated 144 launches. This reverses a four-quarter trend of net growth in the number of funds, with liquidations rising over the prior quarter while launches were essentially flat over 2Q.

Investors are facing a change of guards. Philippe Jabre is returning money to investors after an "especially challenging" year, adding to the swelling list of hedge-fund veterans giving up on an industry where money-making opportunities have dwindled. Philippe Jabre's plans to close three funds he personally oversees seems like an ominous omen for the $3 trillion hedge fund industry.

Jumping into the fray, New York-based River Birch Capital, co-founded by former Lehman President and Chief O......................

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