Alternative Asset Management
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Hedge Funds Ended Year with a Strong Finish
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“Hedge funds performed well in 2020,” says the alternative assets intelligence firm Preqin.
With returns of 16.63% across all asset classes, hedge fund returns were ahead of the S&P 500 PR Index, which closed the year at 16.26%, according to the 2021 Preqin Global Hedge Fund Report. It was the asset class’ highest annual return since 2009.
Preqin said the best performing strategy was equities, with a 19.64% return. …
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Private Equity Activity Expected to Continue to Increase
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After a rocky start to the year, global private equity hockey-sticked up in the third quarter to finish the year with a total deal value of $555.1 billion, 5% higher than in pre-COVID 2019.
Though deal volume fell 18% from 2019, writers Ian Bagshaw, Oliver Brahmst and Daniel Yeh with the international law firm White & Case, called the PE performance a “remarkable feat.”
“While the global PE market …
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Predicting a Boom Year for Hedge Funds
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What can the alternative assets industry, and specifically hedge funds, look forward to this year?
Don Steinbrugge has a few ideas. One that will especially please fund managers is his prediction that “Hedge fund industry assets will reach an all-time high in 2021 driven by one of the largest positive net inflows into the hedge fund industry in over a decade.”
Among his less pleasing predictions is the one that …
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Learn the Essentials of Alternative Assets for Free
Read the rest of this entry »Until now, learning just the basics of the heady world of alternative assets meant taking higher level college courses or landing an entry-level job. Or both.
Last week Preqin announced the launch of Preqin Academy, a free fundamentals program intended to introduce students and early-career professionals to the essentials of the alternative assets industry.
“Our mission is to increase understanding within the alternatives industry, and providing high-quality educational resources …
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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 …
