Wednesday, 27 May 2015
Last updated 8 hours ago
May 4 2011 | 12:02pm ET
Small can apparently still be beautiful, at least to institutional investors who are reported to be taking a closer look at smaller hedge fund managers.
"Over the next 10 years we will see a significant increase in the percentage of pension plans investing a meaningful percentage of their hedge fund portfolio away from the largest managers to small and mid-sized managers,” says Doug Rothschild, managing director of Agecroft Partners.
Agecroft believes the shift will happen in part because managers of smaller funds are more “nimble.”
It may also happen because small funds have been generating big returns: hedge funds managing under $50 million returned an aggregate 13.1% on an annualized basis in the 15 years to December 31, 2010, according to Hedge Fund Research. For funds managing over $1 billion, that number was 11.62%.
Smaller funds also outstripped the 10.23% annualized return of the HFRI Fund Weighted Composite index for the same period.
No wonder, then, that pensions like the California Public Employees’ Retirement System and the New Jersey Division of Investment are looking at smaller funds. According to Pensions & Investment, one corporate pension fund has put $150 million in a fund of funds that invests in emerging minority- and woman-owned hedge funds.
Agecroft Partners expects pensions to follow the example of endowments, which have ceased to view hedge funds as a separate asset class—many leading endowments and foundations are invested primarily in alt asset managers, including large allocations to mid-sized hedge funds.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…