Report Gauges US Investor Sentiment Toward HFs

Nov 13 2013 | 2:02pm ET

Deutsche Bank Markets Prime Finance says Boston investors remain keen on hedge funds, Southern U.S. investors are keen on hedge fund-like mutual funds and Texas investors are active but at varying stages of hedge fund allocation.

The investor sentiment snapshot is found in the the latest DB Markets Prime Finance Hedge Fund Trends.

The team gauged investor sentiment in Boston based on attendance at the Global ARC Conference in that city where it found both institutional and individual investors citing diversification benefits and potential downside risk protection as key benefits to hedge fund investments.

Much as they appreciate hedge funds, however Boston investors were also keen on lower fees, greater alignment of interests between limited partners  and managers, and gates/lock-up provisions which protect investor interests.

As for the Southeast, the research team met with several Miami-based family offices and  funds of funds and found the latter “very focused on leveraging their research capabilities to reach retail investors by launching mutual funds.” These investors are looking for hedge funds who are interested in acting as sub-advisors for these 40-Act products.

The family offices, on the other hand, were primarily interested in event-driven managers followed by more directional equity long/short managers. There was less interest in CTA and quant managers.

In Dallas and Austin, the team met “a handful” of investors including two endowments and a fund of fund. All were active in the hedge fund space, but at varying stages—one was in the process of rebalancing their portfolio to group assets according to risk buckets, while another was in the process of launching a liquid alternatives product and the third was actively deploying capital as assets were being returned from their private equity investments.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...