“Appetite for alpha to rise” according to institutional survey
Feb 12th, 2008 | Filed under: Institutional InvestingAccording to a new survey from the “Thinking Ahead Group” at consulting firm Watson Wyatt, “respondents expected the appetite for alpha to rise, stirred by a focus on absolute return investment, premised on greater investment product transparency.”
Perhaps strangely then, survey respondents have ranked hedge funds, funds of funds, large consultants (Watson Wyatt?) and buy-out firms as “industry losers” in terms of revenue growth. Multi-strategy funds, fiduciary management, niche consultants and investment banks were judged to be likely “industry winners” according to the survey. (Hedge fund blogs, in case you were wondering, were not included in this particular survey).
Specifically, 73% of nearly 500 respondents (mostly European) agreed or “strongly agreed” with the statement, “Appetite for alpha will grow significantly due to the need for higher returns”. Conversely, only 12% agreed or strongly agreed that “Appetite for alpha will be modest, reflecting doubts about its sustainability and likely impact.”
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