Mon, Dec 10, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers May 2018

Perspectives: Investors eye capacity constrained strategies

 

Investors eye capacity constrained funds

It's no secret that investors are putting more money into lowcost passive investments than ever before. But, there may be an unexpected benefit for fund managers - a renewed interested in niche funds.

"We have been drawn to more capacity constrained strategies lately," said Stephen Prince, Head of Asset Management, at Tetragon Financial Group from the stage at Context Las Vegas. He added that for investors that are willing to look at smaller funds the alpha generation opportunities can be significant

Strategies noted from the stage included microbuyout, discretionary global macro, short-only and thematic programs

As Opalesque previously reported, seeding platforms have already become more open to niche funds but often big investors are the last to sign on. Michelle McCloskey, President of Americas at Man Group suggested that investors are getting savvier about the role of different strategies in an overall portfolio which is leading them to take a second look at funds they may have previously passed over. "It's not so much about total return anymore," she said. "Investors are thinking about outcomes and risk management. The role of active management is changing in the eyes of investors."

If what McCloskey says is true, then arguably investors are thinking about active management correctly for perhaps the first time.

Panelists added that opportunities for alpha change as market regimes change, which means that certain strategies may fall out of favor for a time. That doesn't mean active management is dead. Indeed investors may return to active managers if volatility sticks around. "What people have forgotten is that we are in a very anomalous time for markets," said Robert E. Kiernan, Principal and Chief Executive......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Outlook: The economist who discovered the yield curve's predictive powers says he's getting worried, The 'big squeeze': Ray Dalio, founder of the world's largest hedge fund, breaks down how the next financial meltdown will look different from the last[more]

    The economist who discovered the yield curve's predictive powers says he's getting worried From CNBC: Arturo Estrella and his former Fed colleagues used to watch the relationship between the 10-year Treasury and the 3-month bill. A lot of people have been focused lately on the di

  2. People: Deutsche Bank appoints new country head in Switzerland, London's MENA Capital and Dubai's Al Mal agree collaboration deal, BlueBay appoints new CIO[more]

    Deutsche Bank appoints new country head in Switzerland From Investment Europe: Deutsche Bank has appointed Claudio de Sanctis as the new chief executive officer of Deutsche Bank (Switzerland) Ltd, effective 1 February 2019, after Peter (Pedro) Hinder decided to step down. The appoint

  3. Hedge funds pivot back to stocks, raising leverage from 2018 low[more]

    From Bloomberg: The smart money is finally warming up to U.S. equities after turning defensive in the past few months. Hedge funds' gross leverage, a measure of the industry's risk appetite, climbed 2.5 percentage points to 234.5 percent as of Nov. 29 from a one-year low reached 10 days earlier, cli

  4. Brexit: Hedge funds make big bets against post-Brexit UK economy, Hedge funds rent a lifeline to stay afloat in EU post-Brexit, Treasury green-lights sale of new EU funds into UK[more]

    Hedge funds make big bets against post-Brexit UK economy From The Guardian: A pair of hedge funds owned by prominent Brexit supporters have made significant bets against companies exposed to the British consumer including big high street names. Odey Asset Management, part-owned by Cr

  5. Trends: Licking their wounds, fund managers prep for rally in '19, Concerns rising over leveraged loan market[more]

    Licking their wounds, fund managers prep for rally in '19 From Reuters: With bond and equity markets from the United States to emerging markets all on pace to lose money this year, investors have not seen this much red on their screens since 1972, the last time no asset class returned at