For many emerging private equity managers, fundraising is a difficult task. Investors that are comfortable with first-time funds can be few and far between if managers don’t target the right prospects. BHA analysts spoke with several large institutional investors in … Continue reading
After launching a hedge fund, one of the first decisions the principals must make is when to begin marketing to outside investors. The majority of managers begin raising capital by calling on friends, family, and other close contacts. However, managers … Continue reading
For a number of years, many institutional investors have looked to the alternative industry to increase the diversity of their portfolios. Some, such as consultants, funds of funds, government pensions, and corporate pensions, have sought out emerging managers to accomplish … Continue reading
As if smaller hedge-fund managers didn’t have enough to worry about in today’s economy, newly adopted financial regulations are forcing them to change the internal structure and operation of their hedge funds. After the credit crisis of 2008, the U.S. … Continue reading
In 2010 the hedge fund industry was dominated by larger funds that were able to win an immense share of the allocations from institutional investors. A great example of this came in the third quarter, where, more than $14bn of … Continue reading
Over the past few quarters, larger CTA/managed futures funds continued to be pressured by investors. Returns have fallen and investors have been questioning these funds’ performance predictions. As a result, many investors are looking to emerging CTA managers to regain … Continue reading
Traditionally, emerging hedge fund managers have relied on a handful of funds of funds and high net worth investors for capital. Today, many are trying to appeal to a wider audience. Given the difficult fundraising environment, this makes sense. However, … Continue reading
The fund of hedge funds industry has its back against the wall. Since 2007, there has been a steady decline in allocations as more investors make investments directly in hedge funds to avoid additional fees. According to The Wall Street … Continue reading
The expectation of many alternative investors has changed. Where once they were willing to ride the market’s ups and downs, today many are looking for positive returns regardless of the direction the market takes. That, of course, is the basic … Continue reading
Sovereign wealth funds (SWF) are government-backed investment vehicles. At the end of 2009, these funds had approximately $3.8 trillion under management.1 Although SWFs have been around for decades, their numbers have increased dramatically in recent years. Of the top 50 … Continue reading