Funds Of Funds Evolving, Confident About Future

Jun 13 2014 | 10:09am ET

Many epitaphs for fund of hedge funds industry have been written, but those involved are adapting—and confident about their ability to survive.

An Infovest21 survey shows that more than six in 10 poll respondents think the next year will be a good one for funds of funds, with just 18% fearing a negative year. Those answering the questions also gave a peek at how funds of funds are changing in order to hold on to—and develop new—clients.

Nearly one-third of firms now offer vehicles regulated under the Investment Company Act of 1940, funds that can be available to retail investors. Another 26% say they are offering more specialized products; a similar number say they are considering or have already set up strategic partnerships.

Of course, fears do remain, and the biggest among funds of funds managers is the increasing interest among institutional investors in directly investing in hedge funds, which often involves ending relationships with funds of funds.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note