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PARTNER FEATURE
Part 1 – Choosing the right structure: For any Alternative Investment Fund Manager (AIFM), the main factors that define the success of their business will be the amount of capital they are able to raise and the performance of the funds that they manage.
INSIGHT REPORT
INSIGHT REPORT
INSIGHT REPORT
With the ESG juggernaut gathering pace in financial markets, how hedge funds traverse short-selling challenges, tech advances, and the data “wild west” will be key to unlocking future returns.
Long seen as the preserve of traditional long-only buy-and-hold strategies, impact investing and sustainability-focused themes have gathered pace within the global alternative investment community over the past decade.
In times past, industry concerns centred around whether effective ESG implementation could ever be compatible with alpha generation. But as allocators place greater scrutiny on how their portfolios and investments can meet the expanding set of climate change, diversity and corporate governance challenges,
INSIGHT REPORT
About a third of hedge funds invest in ESG-dedicated strategies leading to investment demand being considered a ‘primary driver’ in improving ESG, research from BNP Paribas shows. One-fifth of investors plan to increase this in 2022 and a further 23 per cent are considering an investment.
Pensions remain the leaders in this space, with analysis showing how 25 per cent of public pension funds invested in ESG hedge funds along with 22 per cent of corporate pension funds.
Societal trends, greater awareness regarding the environment and equality, and efforts from governments have all pushed institutional investors in particular to want
Demand for aggregating financial information and internal research in one central location has been growing. As hedge fund analysts look to manage information overload and several disparate manual research processes, an overlay of AI-processing power and content can cut research time to a fraction of what it previously was and help elicit more relevant insights.
The coming years will set the scene for technology advancements and geographic growth as clients call for an innovative and competitive alternative to incumbent providers in the prime brokerage space. Given the current volatility and additional scrutiny, reliable providers are critical to managers’ survival, particularly in the context of increasing consolidation.