This past quarter has been a challenging one for fund managers. The crisis in Europe is causing financial markets worldwide to seesaw, making it difficult for managers to predict trends. Because of this uncertainty, many investors have shifted away from … Continue reading
Multi-strategy funds of hedge funds are typically preferred by investors that want exposure to hedge funds but do not have the in-house capacity or expertise to conduct the necessary due diligence and construct a portfolio. Recently, however, BHA analysts have … Continue reading
Over the past four months, the BHA analyst team has seen an increase in the number of mandates for funds of hedge funds, especially from European investors. The analysts have also noted a change in these investors’ liquidity requirements: it … Continue reading
During the week of April 5, there was a pronounced increase in the number of investors looking to funds of funds to gain exposure to emerging markets. Compared with the prior week when no fund of funds investors were targeting … Continue reading
Single-strategy funds of hedge funds have not been the fund structure of choice among investors. So far this year, BHA has received 94 funds of hedge fund mandates. Of those, 70 have been for multi-strategy funds of hedge funds. Although … Continue reading
Many investors place capital in funds of hedge funds in order to gain exposure to non-traditional asset classes. One group of investors that has shown a particular interest in this strategy of late has been wealth advisors. During the fourth … Continue reading
Private equity and real estate investments are not new to many sovereign wealth funds (SWFs), but hedge funds are. This year, the Chinese Investment Corporation (CIC) committed $500 million to funds of hedge funds managed by The Blackstone Group and … Continue reading
Investor interest in funds of hedge funds has seen a resurgence in recent weeks as the shake out in the hedge fund industry continues, and managers are offering more transparency and more favorable liquidity terms. Investors have shown particular interest … Continue reading
During the past several weeks, Brighton House analysts have noticed increased interest in single-strategy funds of hedge funds. In response to the perceived inauspicious conditions in the funds of funds space, investors are looking for funds that provide diversified exposure … Continue reading
Diversification is an investment strategy designed to reduce risk, specifically unsystematic risk, by selecting a variety of investments that are unlikely to respond to market fluctuations in the same way. There are many different types of risk endemic to private … Continue reading