Alternative Asset Management
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2018 Was a Record Year for VC Activity
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When talking about venture capitalists, California and its Silicon Valley may be the first place to come to mind. In 2018 the state accounted for well over half the $130.9 billion invested. Massachusetts and New York were second and third.
Last year was a record-breaker for VC investment. The Pitchbook declared, "2018 ended up being a banner year for the VC industry with $130.9 billion invested across 8 ...
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Alternative Assets Are Going Mainstream
Read the rest of this entry »Alternative investments are going mainstream, at least with institutional investors; 80% of them have allocated funds to at least one asset class that's historically been considered an alternative.
Discussing a report conducted by Preqin and SEI, ValueWalk says the interest by institutional investors is leading to “increasingly diverse and complicated portfolio holdings" for many of them. The growth of alternatives among these investors -- “a growing stream of capital," as ...
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Hedge Fund Outlook: The Challenges Are Many
Read the rest of this entry »Beaten by Index fund returns, outpaced by saavy online fintechs and rebuked for a 2 and 20 fee structure that lets them win even when investors lose, hedge funds have been forced to wonder what their future holds. As a sobering, yet ultimately encouraging new report from the Alternative Investment Management Association says, "The pace of technological change and the rise of artificial intelligence is leading some to question whether ...
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Interest In Alternative Investments Is On the Rise
Read the rest of this entry »Well before the stock market began its seesawing slide, interest in alternative investments was on the rise.
A research report from Cerulli Associates says 40% of financial advisors are including alternatives in their investment mix. Their mean allocations to alternatives last year was 7.2% of assets under management, representing a substantial increase from the 5.7% of the year before.
As quoted on ThinkAdvisor, Cerulli director Michele Giuditta explained ...
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Hedge Fund Jobs Are the Most Competitive In Finance
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Looking to break into hedge funds? It won't be easy, says an Investopedia article.
Competition for even entry-level jobs "is highly competitive and very selective." The high salaries are one reason; an entry-level analyst position can pay as much as $370,000 to start. And that doesn't count bonuses. It's also an exciting, fast-paced world where performance matters and an entry-level person can move up quickly, working on 7 ...
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KPMG Says Fund Managers Must Digitize More Quickly
Read the rest of this entry »A new whitepaper from KPMG declares in no uncertain terms that the alternative investment industry must digitize and do it more quickly than it has so far been willing to.
" Fund businesses that dawdle are missing opportunities to advance in the marketplace by cutting costs, accruing operational benefits, and most of all, satisfying investors (and potential investors) who have shown little patience for businesses that move slowly," KPMG ...
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Target-Date Funds Could Get Better Returns by Including Alternatives
Read the rest of this entry »Increasing diversification of investments in target-date retirement funds significantly improves the overall performance yielding greater retirement income over a longer period of time.
The Georgetown University Center for Retirement Initiatives and Willis Towers Watson studied target-date funds concluding that by increasing their diversification including alternative assets such as hedge funds and private equity, retirement income could be increased by 7% to as much as 11%.
Most target-date funds are invested ...
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High Net Worth Managers Need to Understand Tax Law
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A Forbes article last week makes the compelling case that managers of alternative investment funds, and especially those managing funds for ultra-high-net-worth (UHNW) individuals and families, can't be blind to the effect of tax laws on their clients and the returns their funds earn.
Yet, writes John Pantekidis, Chief Investment Officer and General Counsel at TwinFocus Capital, "Ask any of them how the new tax law not only affects their ...
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Hedge Fund Fees At Historic Lows
Read the rest of this entry »Hedge fund management fees declined to record lows as the industry's assets rose to $3.22 trillion, according to a report from Hedge Fund Research.
The average fund fee declined to 1.43% during the first quarter, in part due to the 1.19% average fee charged by the new funds.
“Hedge fund industry growth has continued to record levels, with fund strategies and structures evolving as both fees and ...
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Most Expect Consolidation Of Alt Fund Admin Firms
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In a dramatic turnabout from a year ago, three-quarters of alternative fund administration firms expect industry consolidation in the near term. The recently released eVestment Alternative Fund Administration 2018 survey found respondents to the annual survey far more likely now to see net exits to increase than they were in 2017 when 47% foresaw fund administration firm consolidation.
A comment in the report, attributed to a "Global Custody Bank," said ...
