Fri, Mar 22, 2019
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. Half of real estate investors are considering investing in opportunity zone funds (OZFs) in 2019[more]

    Laxman Pai, Opalesque Asia: A survey found that 51% of real estate investors were considering investing in opportunity zone funds (OZFs) in 2019, while a further 12% are interested in the longer term. A less widely publicized part of the 2017 Tax Cuts and Jobs Act in the US was the creation

  2. Renaissance founder says hedge fund has overcome Trump tension[more]

    From FT: Renaissance Technologies has overcome internal tensions sparked by the political views of its former co-chief executive Robert Mercer, according to the founder of the $60bn computer-powered hedge fund. Jim Simons, a former cold war codebreaker who is also chairman of the fund, said Re

  3. New Launches: WhiteBox duo plans to launch new event-driven distressed debt fund, UBP unveils credit long/short fund, Man GLG launches high yield fund for ex-Schroders manager Scott, Caisse de d?p?t et placement du Qu?bec launches $250m AI fund, Accel Partners raises $2.5bn across three funds[more]

    WhiteBox duo plans to launch new event-driven distressed debt fund From Bloomberg: Whitebox Advisors LLC colleagues Cindy Delano and Amit Patel have teamed up to form a hedge fund focused on event-driven and special situations that could arise as credit markets tighten. Invictus Glob

  4. Morgan Creek Digital makes strategic investment in Ikigai Asset Management[more]

    Laxman Pai, Opalesque Asia: Morgan Creek Digital Assets (MCDA) has made a major new investment in another crypto-related firm. The hedge fund is committing to a new fund launched by Ikigai Asset Management (IAM). MCDA, founded by Mark Yusko, Jason A. Williams, and Anthony Pompliano, said in a

  5. People: Head of top hedge fund association to step down, Former State Street Exec to lead Equity Trust, Affiliated Managers names Thomas Wojcik next chief financial officer, MoraBanc restructures following Goldman Sachs partnership, Franklin Templeton expands emerging markets equity team[more]

    Head of top hedge fund association to step down From The Hill: Former House lawmaker Richard Baker, who has led the Managed Funds Association (MFA) for more than a decade, announced Wednesday that he will step down at the end of the year. MFA, which represents the hedge fund industr