Demand for hedge funds is said to be in decline with investors because of their high fees, opaque nature and poor recent performance. But figures released by the European Fund & Asset Management Association (Efama) suggest that’s not the case in Europe.
2016’s record inflows into ETFs contrasted sharply with another year of net outflows from the hedge fund industry, according to new data from ETFGI, an independent research and consultancy firm.
It’s the big divorce that is the talk of today’s headlines – yes, investors have fallen out of love with hedge funds.
Not the excessive fees they charge, but the rapid AuM-growth of hedge funds after the financial crisis is to blame for their disappointing performance. Unfavourable macro conditions also play their part.
Net flows into hedge funds by European investors decerased only marginally in 2015, according to Evestment data. The US saw strong outflows, contrasting with exponential growth in Asia.
JP Morgan AM today launched a Ucits fund of hedge funds which is run on a managed account basis by seven different hedge fund managers. While the JP Morgan Multi-Manager Alternatives Fund is Ucits-compliant, some of the strategies it uses are not.
Around half of hedge funds intend to launch a new fund by the end of next year and most are reporting rising assets, according to industry research.
Jersey-based hedge fund BlueCrest Capital Management is to return investors’ money after being hit by outflows and pressures on its profitability through fees, staffing and meeting client needs.
Over the past two decades or so, Ucits has become the default fund format for cross-border funds. Since the UCITS IV directive opened up the alternative space for Ucits funds in 2009, the format has become even more ubiquitous. Its dominance has even gone as far that many fund selectors have narrowed down their selection…
Institutional investors based in Europe have withdrawn $6.8bn from offshore hedge funds in the first seven months of the year, according to data compiled by Mandatewire. By contrast, North American investors have continued to pour money into the asset class.
Demand for liquid funds with a mandate to invest in derivative strategies appears insatiable in Europe, with net fund flows having exceeded €7bn each month since February. And a convincing majority of fund buyers wants to continue adding to their absolute return holdings, according to EIE’s latest data. But do these so-called alternative Ucits funds…
Jean-Charles de le Court tells EIE’s Dylan Emery how he goes about selecting managers for his ‘fund-of satellites’ strategy. He explains why he is not so much focused on volatility, but insists on managers who invest in their own funds.
