Progress report
An assessment of hedge fund YTD performance in the face of renewed fears for a potential eurozone crash Read More
Against the backdrop of difficult market conditions and growing investor…
14/07/2010
It’s been a tough couple of years for emerging hedge fund managers. Caught in the interminable catch-22 of trying to establish a solid track record and attract investment without having any track record to reassure investors, post-crisis capital raising has, for many, been a frustrating enterprise.
But while the life of the new manager is still far from an easy one, prospects for future growth today seem much improved.
One fund of hedge funds (FoHF) recently told HFMWeek that it now actually prefers allocating to newer, smaller managers, as it often finds them to be keener, more focused and – crucially – better performers.
And said FoHF, it seems, is not alone. A 2010 report produced by research firm Preqin revealed that around 35% of institutional investors surveyed were happy to invest in funds with less than $100m in assets under management.
That said, in hedge funds, as in life, it helps to stand out from the crowd, and according to consultants from both Mercer and Towers Watson, smaller managers running more ‘niche’ strategies – traded life policies being a key example – are enjoying a growing interest from institutional investors.
If a manager is able to offer investors greater diversification alongside robust risk management and, of course, the ability to generate solid returns, bigger, it seems, is not always necessarily better.
07/06/2012
Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…
31/05/2012
The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…
02/02/2011
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
Be the first to comment on this article!