Latest Editorial Board contribution to All About Alpha, the official CAIA blog.
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. … Read more »
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… Read more »
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… Read more »