Alternative Asset Management
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New Report Is Bullish on Alternatives’ Future
Read the rest of this entry »The future of alternatives is bright, with the financial sector growing at an annual rate of almost 10% between now and 2025.
Preqin, an alternative assets data and analytics firm, predicts that in five years the sector will have $17.16 trillion in assets under management (AUM), a 60% increase from today’s $10.74 trillion.
The two biggest drivers of that growth will be private equity at a 16% compound annual growth …
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Cost Drives Equity Fund Managers to Make Changes
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When managers of private equity funds changed service providers this year, cost, quality and increased portfolio complexity were typically behind the decision.
Preqin, a leading source of data and analytics about the alternative assets industry, says this year’s unusually challenging environment is prompting fund managers to more intensely evaluate their service providers. The relationship between cost and quality of service is being scrutinized especially closely.
“Managers,” Preqin comments, “Want service …
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Alternatives Investors Plan to ‘Stay the Course’ This Year
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Despite market volatility and an uncertain economic outlook, investors are committed to their alternative asset programs, declares Preqin in its half year investment update.
The majority of investors in alternatives say they intend to stay the course this year, telling Preqin they are satisfied with the performance of their portfolio over the last year.
“Almost all investors intend to either maintain (60%) or increase (33%) allocations to private capital, …
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Wall Street Bonuses Are Shrinking This Year
Read the rest of this entry »About those year-end bonuses Wall Street bankers and traders were expecting just a few months ago: If they happen at all they’re going to be smaller than last year.
The compensation consulting firm Johnson Associates Inc. says the prolonged business shutdown, which has kept millions unemployed, is weighing on banks, which have upped their cash reserves anticipating the possibility of widespread credit defaults.
They’ve also taken a hit to lending …
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Investors Are Again Favoring Hedge Funds
Read the rest of this entry »After seeing investors move their money out of hedge funds for nine consecutive quarters, Bloomberg says better times for the industry are right around the corner.
The prediction comes from a Bloomberg Mandates survey of 50 institutional allocators with more than $500 billion in assets. Half of them said they have or plan to increase their investment in hedge funds.
Reporting on the results of the survey, Boomberg.com said, “The …
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The Allure of the Freelance Quant
Read the rest of this entry »Robert Carver, author and retired executive at quantitative hedge fund AHL, poses this seductive question to quants: “What if you could work for yourself, and still build hedge fund trading systems?”
Imagine developing a trading strategy and then selling it or licensing it to a fund for big dollars or a share of the profits. “For the quant,” writes Carver in an article for eFinancialCareers, “This is a pretty …
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Here's Where to Look For News
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In the fast moving world of alternatives, one of the challenges is not just staying on top of the financial news, but trying to be ahead.
There’s no shortage of information. Fund managers employ highly-paid analysts using sophisticated computer programs and artificial intelligence to sift through the firehose of news and data to detect actionable patterns and trends.
But when professionals (and more than a few investors) look for news …
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Silver Lining For Hedge Funds In Market Chaos
Read the rest of this entry »As financial markets worldwide continue to slowly push up from their March collapse, hedge fund investors are experiencing less of a ride and in some cases are seeing strong positive returns.
Hedge funds overall are down an average of 4.6% for the year through late April, according to a Reuters report. That contrasts with the S&P 500 which was down 10% for the same period.
More than a few managers …
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Banks, Asset Managers Begin Hiring Again
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Amidst a volatile stock market that's seen more ups and downs -- more ups than downs in the last few weeks -- than a roller coaster, more than a few banks did so well in the first quarter some have resumed hiring while their employees are beginning to anticipate year-end bonuses.
"As the pandemic persists, there are signs that banks are biting the bullet and going ahead with interviewing and …
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Virus Stalls Global IPO Activity
Read the rest of this entry »IPO activity that was on track to regain the momentum of the first quarter of 2018, may now end 2020's Q1 just slightly better than last year.
EY's quarterly Global Trends Report says the quarter ending today will show no more than 235 IPO deals. Better than 2019's 211, but far short of the 323 reported in 2018. The dollar value also pales in comparison: $28.5 billion this year versus …
