Changing Hedge Fund Investor Base
Hedge funds attracting more institutions, fewer private investors.
- Process-driven investing, regulatory burdon, method of access all lead to a level of sophistication for direct investing or through FOFs.
Hedge funds attracting more institutions, fewer private investors.
- Process-driven investing, regulatory burdon, method of access all lead to a level of sophistication for direct investing or through FOFs.
As if everyone’s database wasn’t already in tatters. Today comes news of the expected consolidation wave that will roll-up the Swiss FOF industry.
In an article in Hedgeworld/Reuters, Martin de Sa’Pinto commented that the “you can get there from here” nature of the compensation structure will compell FOFs into one another’s arms.
“Many of Switzerland’s smaller fund [...]
I pulled out a couple excerpts below from an obvious but informative piece that recently came across the transom. the email from Hedgeworld hit my inbox as I was hanging up with a Geneva based investor member. A fund of fund that creates portfolios for private banks he felt like he was doing all the [...]
While hard data on the hedge fund industry is hard to come by, it is commonly understood that 50% of single manager money comes from FOFs.
According to Hedgeworld, 30% of that 50% is gone, with significant implications for raising new capital. To name a few:
- consolidating positions
- knock-on redemptions
- legitimate concern over business viability
- limited [...]