Articles By Topic
By Topic: Surveys
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From Vol. 5 No.4 (Jan. 26, 2012)
Survey by SEI and Greenwich Associates Highlights the Importance to Hedge Fund Investors of a Clearly Articulated, Comprehensible and Credible Value Proposition
In October 2011, SEI Knowledge Partnership (SEI) and Greenwich Associates conducted their fifth annual survey of institutional hedge fund investors. On January 25, 2012, they released a report summarizing part one of the results of that survey (Report), including current trends affecting the hedge fund industry, including institutional hedge fund allocations, objectives, performance and preferences in investment strategies and vehicles. The Report, entitled “The Shifting Hedge Fund Landscape, Part I of II: Institutions Put Fund Managers to the Test,” identifies a deepening commitment to hedge funds on the part of institutional investors, and foreshadows increased institutional allocations. At the same time, however, the Report finds that institutions keep creating new challenges and requirements for hedge fund managers. Notably, the Report also details what hedge fund managers must do in order to maintain investor confidence. Part two of the survey will explore investors’ chief concerns regarding hedge fund investing, as well as the continuing evolution of institutional standards for hedge fund evaluation, selection and monitoring. This article summarizes the findings of the Report and the key takeaways for hedge fund managers. See also “SEI Report Describes the Growth Opportunity for Hedge Fund Managers in Regulated Alternative Funds,” The Hedge Fund Law Report, Vol. 4, No. 44 (Dec. 8, 2011).
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From Vol. 5 No.2 (Jan. 12, 2012)
Aksia’s 2012 Hedge Fund Manager Survey Reveals Managers’ 2012 Predictions Regarding Tail Risk Hedges, Portfolio Transparency, Movement of Balances Away from Counterparties and More
In November 2011, Aksia LLC (Aksia), an independent hedge fund research and advisory firm, published its 2012 Hedge Fund Manager Survey (Survey) in which it solicited predictions for 2012 from 125 hedge fund managers managing approximately $800 billion in assets and employing various investment strategies. Thirty-eight percent of the respondents employ long-short equity strategies, 26% employ event-driven strategies, 18% employ relative value strategies and 18% employ tactical trading strategies. Among other things, the respondents made predictions about market and investment strategy performance, economic growth projections and various scenarios with respect to the European financial crisis. The respondents also shared their views on policymakers’ handling of the global financial crisis as well as the impact of market correlation and new financial regulations on their investment strategies. Notably, respondents opined on hedge fund industry specific practices, such as the use of hedges for tail risk, portfolio transparency, movement of balances away from counterparties and the availability of financing in 2011. This article summarizes the Survey’s findings.
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From Vol. 5 No.1 (Jan. 5, 2012)
Ernst & Young Survey Juxtaposes the Views of Hedge Fund Managers and Investors on Hedge Fund Succession Planning, Governance, Administration, Expense Pass-Throughs and Due Diligence
Ernst & Young (E&Y) recently released the 2011 edition of its annual hedge fund survey entitled, “Coming of Age: Global Hedge Fund Survey 2011” (Report). The Report conveys and compares the views of hedge fund managers and investors on topics including succession, independent board oversight, use of administrators, expense pass-throughs and due diligence. This article summarizes the more salient findings from the Report. One of the Report’s many interesting insights is that managers frequently receive little in the way of feedback when a potential investor declines an investment. The Report partially fills this “feedback gap” by offering generalized insight on what matters most to investors. For example, managers may be surprised to learn that the absence of a robust and reliable succession plan may have played as much or more of a role in a lost investment as performance or even operational issues. (The HFLR will be covering succession planning for hedge fund managers in an upcoming issue.) More generally, the depth of the disparity in perception between managers and investors on a range of topics, as found by the Report, is at times startling. The Report therefore offers a sobering reality check for both managers and investors. Both sides need one another, albeit for different reasons, and the lifecycle of an investment can be significantly more productive if expectations and assumptions are better aligned.
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From Vol. 4 No.36 (Oct. 13, 2011)
AsiaHedge Study Finds That a Growing Proportion of Hedge Funds with Asia-Focused Strategies are Managed From Asia
A September 2011 survey (Survey) by AsiaHedge Research uncovered data with respect to: assets under management (AUM) by Asia-based hedge fund managers and Asia-focused strategies; AUM trends; the composition of the investor base in Asia-focused funds; the evolving industry structure; the level of AUM in Asia-focused hedge funds managed from within the region versus from outside of the region; the amount of assets managed from various sub-regions in or focused on the region; and the top Asia-focused strategies by AUM. This article details the key points from the Study.
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From Vol. 4 No.18 (Jun. 1, 2011)
Rothstein Kass Survey Reveals Optimism on the Part of Hedge Fund Managers with Respect to Capital Raising, Talent Mobility, Seeding, Industry Consolidation, and In Other Areas
Rothstein Kass, the provider of audit, tax, accounting and advisory services to private investment funds and their advisers, recently released the results of a survey of 313 hedge fund managers conducted in January of this year. The survey provides market color on a wide range of relevant topics, and highlights the differing perceptions among larger and smaller managers. Topics covered by the survey include: registration; talent mobility; optimism among managers; seeding; hedge fund industry consolidation; where the next investment bubble will develop and when it will pop; leverage and liquidity; capital raising; family offices; technology; the role of consultants; fees; outsourcing; branding and communications; and anticipated areas of regulatory scrutiny. This article summarizes the salient findings of the survey on the foregoing topics, and elaborates on the survey findings with links to relevant articles published in The Hedge Fund Law Report.
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From Vol. 4 No.11 (Apr. 1, 2011)
Survey by SEI and Greenwich Associates Identifies the Primary Decision Factors and Concerns of Institutional Investors When Investing in Hedge Funds
A survey of 97 institutional investors and 14 investment consultants conducted by SEI Knowledge Partnership in collaboration with Greenwich Associates last October, and released earlier this year, identifies the hierarchy of considerations and concerns of institutional investors when investing in hedge funds. One notable finding of the survey – especially for a publication, like the HFLR, focused on regulation – is the view of most institutional investors with respect to regulation. That view is discussed in this article. In addition, this article discusses the survey’s findings on the following topics: statistics with respect to hedge fund returns, assets under management, launches and liquidations during the last three years; plans with respect to hedge fund allocations during 2011; objectives of institutional investors when investing in hedge funds; most significant challenges in hedge fund investing; experience with and perceptions of liquidity; the 16 factors that investors consider most important when selecting among managers; four key takeaways for hedge fund managers from the survey findings; breakdown of hedge fund allocations by institutional investor type; trends with respect to fees; the role of consultants; the success rate of negotiations on liquidity terms; and trends with respect to the resources dedicated by institutional investors and consultants to hedge fund due diligence and monitoring.
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From Vol. 3 No.4 (Jan. 27, 2010)
Survey Suggests that Institutional Investors in Hedge Funds Favor Online Investor Reporting Systems
On January 25, 2010, Netage Solutions, Inc. – a CRM software and online reporting systems provider for the alternative investment industry – announced the results of a survey covering 31 institutional investors, family offices and advisers. The survey, conducted in the fourth quarter of 2009, concluded that “limited partners and their advisers overwhelmingly agree that online reporting systems help increase transparency.”
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From Vol. 2 No.46 (Nov. 19, 2009)
Ernst & Young Survey Reveals Hedge Fund Industry Has “Weathered the Storm”
A new survey published by Ernst & Young, entitled “Global hedge fund survey: Weathering the storm” has concluded that the 2009 global downturn has forced hedge fund managers to respond swiftly and dramatically to the demands of investors. The survey, based on one hundred telephone interviews with the largest hedge funds in the United States, Europe and Asia, and representing roughly half the industry, found that significant changes to fund governance, administration and investor reporting over the last year has enhanced investor confidence without adding significant costs. The fund managers polled also observed the rapid improvements to transparency and governance as proof that the industry can effectively respond to the needs of investors. These observations stand in stark contrast to managers’ concerns regarding increased regulatory oversight, which they view as imprecise, of less utility to investors and overly expensive. This article details the survey findings and its analysis of the Draft EU Directive, and discusses implications for the hedge fund industry in the year to come.
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From Vol. 2 No.15 (Apr. 16, 2009)
State Street Hedge Fund Survey Shows that Institutional Investors Remain Committed to Increasing Hedge Fund Allocations in 2009
According to a recent study by institutional money manager State Street Corporation, although overall allocations to hedge funds have been in moderate decline, the majority of institutional investors intend to increase or maintain current hedge fund allocations over the next 12 months. The study, conducted in conjunction with the 2008 Global Absolute Return Congress, indicates that the turbulent financial markets of 2008 have not significantly affected institutional investors’ asset allocations. Indeed, three quarters of the investors surveyed, which included global public and government pensions, corporate pensions, endowments, foundations and insurance companies, reported that they do not plan to modify portfolio allocations. We provide a detailed overview of the study.
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From Vol. 2 No.12 (Mar. 25, 2009)
Survey Questions: What Do Hedge Fund Market Participants Think of the Public-Private Investment Program?
Subscribers to The Hedge Fund Law Report include many of the leading decision makers in the hedge fund industry. Accordingly, we would like to hear your views on participation in the PPIP, given what we know about it today, in the form of answers to questions in this survey. Assuming the responses remain relevant next week – given the pace of regulatory change, the current proposal could be moot by then – we will summarize the responses in the next issue of The Hedge Fund Law Report. Please e-mail responses to the Publisher at publisher@hflawreport.com. No names will be identified in our summary of responses, unless you affirmatively state that you wish to be identified (and even if you do, you will only be identified if the context warrants). We thank you in advance for participating in this survey, and we hope that our summary of responses helps clarify the debate over the appropriate structure of collaboration between the investment management industry and the government in working to unfreeze credit markets.
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