The Alternative Investment Management Association (AIMA), in partnership with Cowen, has published a new report presenting an analysis of the global emerging hedge fund manager community.
The report, ‘Emerging Stronger: The Next Generation Manager Survey 2022’ is informed by two surveys: one of emerging managers running up to $500 million in assets under management (AuM), and another of the investors that allocate to them.
The research revealed a community of hedge fund managers that have weathered the recent macro-economic turmoil and have emerged hardier and more resilient than before.
This has been achieved by slashing costs where possible (for example, in real estate and travel and headcount), sacrificing salaries, and greater use of regulatory platforms.
For a long time, it has been recognised that fund managers must have a track record of at least three years and also boast an AuM of over $100 million before most investors will consider them.
On both these counts, investors surveyed dismissed these views, with data showing that the vast majority would consider a fund that was less than three years old and had under $100 million AuM.
Moreover, investors appear more willing to engage with managers at an earlier stage in their lifecycle and are taking less time to agree to new investments.
