Emerging hedge fund managers expect gains of 10% or more in 2012, according to the GAIM USA Survey of Emerging Hedge Fund Managers.
GAIM’s survey of 90 emerging managers (those with $250 million or less in AUM) found that 61% expect returns in excess of 10%, net of fees, while 31% expect to generate returns of 15% or higher.
The poll also found that while 81% of emerging managers considered “raising assets” their biggest challenge, 40% expect to raise over $50 million in new capital in 2012. If that prediction comes true, it would mean the smallest funds in the survey would double their assets while the largest ones would up theirs 20%.
Emerging managers won’t be going it alone in 2012, they intend to employ external partners or vendors for a number of functions: 41% for marketing, 37% for prime broking and 30% for compliance.
“The survey tells us that emerging managers are almost by definition brimming with self-confidence” said Amanda Rodrigues-Cheung, GAIM USA event director. “Obviously, they have to think that they can outperform the markets, or they would not launch their funds.”
GAIM USA conducted its survey of emerging managers in early December 2011. Full results will be released during GAIM USA Hedge Fund Conference in Boca Raton in January 2012.