Hedge fund investors optimistic
Hedge fund managers and, apparently, their investors remain optimistic despite the global economic crisis and the broadly negative impact on their performance, according to a new Deutsche Bank survey.
The Deutsche Bank Alternative Investment Survey, released this week, sampled the views of over 1,000 investors and revealed that investors remained optimistic about the performance of the hedge fund industry this year, with over 50 per cent predicting the hedge fund index would produce returns of between zero and 10 per cent this year, while 40 per cent expected their own hedge fund portfolios to generate returns of between 5 and 10 per cent.
Commenting on the survey, the co-head of global prime finance at Deutsche Bank, Barry Bausano, said despite the unprecedented challenges faced in 2008, the survey indicated resiliency in the hedge fund industry.
He said in terms of region, 46 per cent of respondents expected equity markets in the United States and Canada to offer the best returns in 2009, with China and Asia excluding Japan expected to be the second and third best performing regions for equities.
According to the survey, transparency and risk management are now among the top five issues for investors with respect to manager selection, while the research also revealed that 72 per cent of investors had reduced their exposure to leverage and 63 per cent were not interested in applying leverage to their own portfolios.
AUTHOR
Mike Taylor
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
