The Barometer is a quarterly report provided to Hedge Connection by John Lowry, Managing Director at ML Capital, a leading global investment firm. The report is designed to help investment professionals identify key moves regarding demand across the various Alternative UCITS strategies. Respondents range across insurance, pension funds and the growing number of financial advisers allocating increasing client assets to the sector. Mr. Lowry leads the UCITS conversation in the Hedge Connection Boardroom as one of our featured Executives.
The following are three key highlights from the report:
· Sharp Rise in Interest for Multi-Strategy Funds
The most dramatic result by far this quarter is for Multi-Strategy funds, which showed an almost fivefold rise in the levels of demand over last quarter’s result. Almost half of our respondents (47%) are looking to allocate to the space, with a cautious eye on the relatively highly priced equity and bond markets.
· Healthy investor sentiment on both US and Global Long Short Funds
Highest level of interest for US Long Short strategies since the inception of the Alternative UCITS Barometer. Following a drop in interest towards the tail end of 2013, sentiment towards the US L/S space has somewhat changed and interest has rallied going into Q3.
· Healthy Upswing towards Emerging Markets
There is a healthy move to Emerging Markets funds shown this quarter. Our research has highlighted that there is emphatic support for Globally diversified funds (39%) as opposed to the more targeted regional products.
Read the FULL REPORT for free on Hedge Connection.