By Don Steinbrugge (pictured), Agecroft Partners – The next 15 months will be the greatest asset raising environment in the history of the hedge fund industry and potentially a once-in-a-career opportunity for managers to grow assets. The strength of asset flows to managers will be much stronger than many industry professionals expect and potentially surpass USD1 trillion.
The resurgent investor appetite for hedge funds is underlined in new data from Barclays’ Prime Services Capital Solutions unit, which shows allocator flows turning positive for the first time in four years, new hedge fund launches outweighing liquidations, increased investor willingness to make allocations without in-person meetings, and total industry assets soaring to an all-time record of USD4 trillion.
“Dig deeper”: Why Syz Capital is looking beyond hedge funds and private equity in hunt for uncorrelated returns
Investors must look beyond hedge funds and private equity in their quest for uncorrelated returns, according to Marc Syz (pictured), co-founder and managing partner at Syz Capital, who believes niche assets – such as litigation finance and life settlements – can offer investors improved portfolio diversification.
Hedging activity remains robust despite overall market volatility levels falling during August, with sustained demand among hedge funds for volatility products holding up in recent weeks, according to new analysis by Man Group.
Non-profits in the US are allocating more to hedge funds, yet private markets remain a favourite, according to TIFF Investment Management (TIFF), an outsourced chief investment officer (OCIO) serving the non-profit sector.
By Robert Quartly-Janeiro – Not long ago the debate of active vs passive was a guaranteed topic at industry events where portfolio managers could battle it out with a machine – sorry, I mean quants.
The boom in online retail during Covid-19 is substantially reshaping the UK’s consumer sector, but Toscafund Asset Management’s Savvas Savouri believes e-commerce sales may peak sooner rather later as restrictions finally end.
The traditional relationship between Momentum and Value factors is becoming increasingly blurred as the Covid-19 pandemic has upended equity markets, according to Unigestion.
The year-long reflation trade in equity markets has left stocks looking “extremely expensive” compared to bonds, with the volume of short positions now at its lowest level in some 15 years, according to Man Group.
Consultants see continued drive towards ‘alternative’ private debt, including regulatory capital and direct lending strategies
Private debt strategies continue to gain investor traction, as institutional allocators look to increasingly esoteric ‘alternative’ fixed- income- style products, according to interviews with global and boutique investment consultancies conducted by Private Equity Wire.