Institutional investors driving “the new active management”: Report
Apr 20th, 2009 | Filed under: Institutional Investing, Today's Post
Casey Quirk just released its latest treatise on the hedge fund industry and like the previous reports produced by the firm in conjunction with bank of New York Mellon, this one also contains reams of data, charts and thought-provoking brain candy for observers of the alternative investment industry. It’s definitely worth a read during your evening commute (unless you’re driving, then we suggest waiting until you get home…maybe read it to your kids as a bedtime story).
One of the themes that comes out loud and clear in the report is the continuing dominance of institutional investors. While this was the result of growing institutional allocations to hedge funds in the 2000-2007 time period, this recent dominance has been thrust upon institutional investors as a result of their loyalty to the asset class.
This chart from the report makes the case in spades:
The majority of the reduction in assets managed by hedge funds over the June ‘08-June ‘09 period is expected to be from high net worth redemptions, not institutional redemptions. While institutions are forecast to withdraw some capital from hedge funds, they still represent a growing percentage of all HF investors (AIMA recently put this number at over 50%).
This won’t surprise industry watchers over at Citi Private Bank who study the attitudes of the world’s wealthy. According to a survey published in The 2009 Wealth Report, most of the planet’s high net worth individuals fled hedge funds in 2008: More…
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
