Small HF Survey: Energy, Real Estate to Impact Economy Most

Mar 3 2006 | 12:00am ET

Small hedge fund managers are expecting rising energy costs and a slowdown in the real estate markets to be the two biggest factors in how the U.S. economy performs this year, according to results of a recent survey conducted by financial service provider VanthedgePoint Group. The Small Hedge Fund Manager Sentiment Survey also reveals that 44% of respondents are slightly bullish on the U.S. economy, while 32% are neutral.

When it comes to investing, 37% of respondents predict international equities will be the best performing asset class this year, while 30% think commodities will be tops and 30% place U.S. equities as the best performer. Meanwhile, 49% expect real estate to be the worst performing asset class.

One result that Geoffrey Tudisco, chief executive officer of VanthedgePoint, finds surprising is that 22% of respondents invest more than 20% of their portfolio in private equity while 17% invest between 6-10% in the asset class. Additionally, 44% of small hedge fund managers say they use index-based products, while another 10% are considering adding them to their portfolios.

Tudisco said his firm, which specializes in providing services to small hedge funds, conducted the survey in order to bring attention to small and emerging managers, which he believes often produce superior results than larger, more established funds.

“Small hedge funds are capable of generating more attractive returns than larger funds because they are not capacity constrained, and their small size allows them to move in and out of positions much easier than large funds,” Tudisco said.

This was the first year VanthedgePoint polled small hedge fund managers, though it plans to conduct the survey annually. The survey consisted of 41 respondents. 


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.