Wednesday, 1 April 2015
Last updated 7 hours ago
Mar 22 2013 | 11:19am ET
The inexorable march of pension funds into hedge funds has slowed, as the industry's earliest backers returned to the fore during a difficult period.
Family offices and high net-worth investors account for 54% of hedge funds' investor base, according to an Infovest21 survey. Pensions make up just 8% of that base.
Family offices actually increased their share of hedge fund investments compared with 2010, Infovest said. Foundations, which make up 3% of the industry's investor base, also increased their share.
By contrast, all other types of investors saw their share fall. Funds of funds now account for 13% of the investor base, financial institutions 11% and sovereign wealth funds for 3%.
As the industry returns to form and the economy begins to grow, those investors are expected to add to their hedge fund investments. Infovest President Lois Peltz said that high net-worth investors and family offices will see their share drop to 49%, while private funds will rise to 15%, pensions to 9% and foundations to 4% over the next year. Financial institutions are expected to hold at about 11%, while SWF fall back to just 1.7%.
The Infovest Manager Snapshot Survey also shows that the average hedge fund has 110 investors, that 90% posted performance gains last year, and that fees are falling. The average management fee was 1.5% and the average performance fee 18.2%; 19% of hedge funds lowered the former last year and 10% the latter.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…