Saturday, 28 March 2015
Last updated 13 hours ago
Mar 19 2009 | 2:46am ET
The former head of Harvard University’s endowment is adding his voice to the harbingers of doom and gloom surrounding the alternative investment industry.
Amidst a series of reports showing hedge fund assets have slipped precipitously, Mohammed El-Erian said that half of hedge fund and private equity firms could go belly-up or merge in the face of massive investor redemptions.
“It would come as no surprise if at least half of the entities in this space were to disappear in the next two years, either through mergers or failures,” El-Erian, now CEO of Pacific Investment Management Co., wrote in a Financial Times column.
“The alternative sector faces a perfect storm,” he added. “These once-prominent pools of capital are finding it harder to secure financing.”
According to some reports, as many as 15% of hedge funds closed their doors last year, as the industry has lost as much as $1 trillion in assets.
El-Erian wrote that hedge funds’ more traditional rivals, such as mutual funds, are also in danger, with the market turmoil cutting operating revenue at some mutual fund firms by half.
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…