Family Office Investors

Below is a short video on the Family Offices Database, a capital raising resource ran by the Family Offices Group. Part of our team here at ThirdPartyMarketing.com helps upgrade this product every 4-6 months.

Learn more at http://www.FamilyOfficesDatabase.com.

Family Office Investors

Below is a short video on the Family Offices Database, a capital raising resource ran by the Family Offices Group.

Learn more at http://www.FamilyOfficesDatabase.com.

Family Office Investors

Below is a short video on the Family Offices Database, a capital raising resource ran by the Family Offices Group. Part of our team here at HedgeFundBlogger.com helps upgrade this product every 4-6 months. If you are viewing this via our daily email newsletter please click here to watch the embedded video below:

Learn more at http://www.FamilyOfficesDatabase.com.

Alternative Investments

Investors Turning Away From Alternative Assets

Following the banking crisis and Bernie Madoff’s large-scale fraud, investors have reason to be anxious. A survey by Quinnipiac University and Greenwich Roundtable sheds some light on investors’ attitudes.

The latest survey reveals that investors are less confident in alternative investments and the regulatory agencies. According to Steve McMenamin, executive director at the Greenwich Roundtable, “Leverage, liquidity, and lack of confidence are still keeping the sophisticated investor on the sidelines. We have never seen so many rational, cool-headed limited partners refrain from making future commitments to alternatives.”

Quinnipiac University and Greenwich Roundtable interviewed almost one hundred institutional and private investors at the beginning of 2009 to find the following results:

Asset Allocation and Market Outlook

• Over the past quarter, more than one third of participants signaled that they had lowered their allocations to alternative investments while 54 percent of participants are keeping their allocations constant.
• Close to 50 percent of respondents believed that asset prices will need to stabilize for a period of six months to a year before investors return to the markets.
• Thirty percent of managers felt it will take a year or longer for market conditions to improve.

Gates

• One third of participants said that between 10 percent and 40 percent of managers are raising gates or suspending redemptions.
• Close to one-quarter of managers indicated dissatisfaction with current fund gate structure.
• About 10 percent of investors felt that gates were being abused.

Madoff

• Approximately 45 percent of members felt that better oversight by the SEC could have prevented the fraud.
• More than 28 percent of respondents believed that any due diligence should have raised enough red flags to preclude investing.
• Twenty-two percent of investors said that verification by auditors could have prevented the Madoff scandal.

Regulatory Agencies

• More than 72 percent of members voiced a negative view of the SEC.
• Ninety-seven percent of respondents believed the rating agencies as ineffective.
• Close to 50 percent of investors had a positive view of the Federal Deposit Insurance Corporation.
• About 47 percent of participants had a positive view of the Federal Reserve Board.

Results from this Source

Tags: Private equity survey, alternative investments, private equity alternative investments, private equity surveys, private equity investors, institutional investors, private equity

Institutional Investors

Institutional Investors & Hedge Funds

These are great times for institutional investors to be completing due diligence on hedge funds, especially those which are between $300M and $1B and are going through the process of being “institutionalized.” In times like these seams burst, trading algorithms are tested, sales professionals get discouraged and some hedge fund managers throw in the towel altogether. In a bull market it is sometimes hard to know how sound the business of a hedge fund is, or how long the fund’s traders or sales professionals might stick around if the market starts to go south. Now is that window of time when it makes more sense than ever to complete on-site visits and thorough research on the top hedge funds which Investment Consultants and family offices are constantly monitoring.

Here’s a short article on the state of industry for some hedge fund managers:
___________________________________________

Only 10 months ago, Remy Trafelet was so flush that he treated about 100 employees at his hedge fund to a getaway in Venice. He and his crew spent a long, luxurious weekend at the five-star Hotel Bauer, which has Murano glass chandeliers, private gondoliers and a splendid view of a 17th-century basilica.

But now, a bit like Venice, Mr. Trafelet’s hedge fund seems to be sinking. His flagship fund has fallen about 26 percent this year, and Mr. Trafelet is struggling to hold on to anxious employees, as well as some investors.

Perhaps the most remarkable thing about Mr. Trafelet is that he is not so remarkable at all. Thousands of hedge fund managers like him — mostly young, mostly male and virtually all unknown outside financial circles — confront a sober reality: for now, the days of easy money are over.

The economics of the hedge fund industry, so lucrative on the way up, are trying even the most seasoned managers on the way down. Hotshots who amassed millions or even billions of dollars from deep-pocketed investors are struggling to persuade those backers to stick with them. For the $2 trillion hedge fund industry, a long-feared shakeout is at hand. Some analysts say one out of every 10 funds could fold.

Mr. Trafelet, who is 38 and first made his name managing money at the mutual fund giant Fidelity, insists his Trafelet & Company will be one of the survivors. He has been through rough patches before and says he is not about to give up now.

“There is an easy way out, but I’m not the one who is going to take it,” Mr. Trafelet said in an investor call on Thursday. “I feel an absolute personal and moral obligation to work as hard as possible especially through a difficult period.” Read more…

Related to Institutional Investors & Hedge Funds | Research:

• Geographical Hedge Fund Guides
• Hedge Fund Employment Guide
• Financial Certification
• Investment Book
• Hedge Fund Terms and Definitions

Tags: Institutional Investors, hedge funds, Research, institutional hedge fund, institutional hedge funds, institutional investors in hedge funds, institutional demand for hedge funds

Institutional Hedge Fund Investments

Institutional Hedge Fund Investments Overview

Institutional investments in hedge funds is at an all time high with a recent survey showing that 40% of all hedge fund assets come from institutional investors. This is impacting how firm operate and what many hedge fund managers are trying to do before launching or “going public” with their young hedge fund and beginning to market it. I know of 3-4 hedge fund managers who took an extra 6 months to line up additional portfolio managers and analysts before launching their hedge fund simply because they felt that related questions would be brought up in RFPs or due diligence sessions so often they wanted to start out on the right foot.

A recent report from Preqin noted that over 55% of pension plans were looking to increase allocations to hedge funds. The recent market volatility is only going to support a further surge of institutional hedge fund investments. This is because many institutions have only been investing in hedge funds for 3-5 years and they are largely outperforming traditional equity products.

- Richard

Subscribe To this Blog via Email | Or RSS

Articles Related to Institutional Hedge Fund Investments

1. Institutional Investors Hedge Fund Due Diligence
2. Hedge Funds Risk Management
3. Hedge Fund Due Diligence
4. Hedge Fund Jobs
5. Hedge Fund Managers
6. Hedge Fund Investors

Permanent Link: Institutional Hedge Fund Investments

Tags: Institutional Hedge Fund Investments, Institutional Investments, Hedge Fund Bank Investors, Institutional Hedge Fund of Funds, Fund of Hedge Funds by Institutional Investments

MSFT > YHOO

I did an interview today with an editor from the E-Commerce Times, who was writing up a piece on how some institutional investors including hedge funds could be hurt by an ongoing battle by Microsoft to take over Yahoo.

I never like to talk about individual securities within my hedge fund blog but this case the conversation related more to the realities of some arbitrage investment strategies than anything else. Before you build large positions within two leaders within an industry it is routine to consider any inter-firm or sector risk created by your choice of securities.

“Microsoft may have confidence that some number of institutional shareholders with a stake in Yahoo want the bid to succeed but not at a higher price,” Greg Sterling, founder of Sterling Market Intelligence, told the E-Commerce Times.

“Losing money on both sides was the risk they took while building meaningful positions within both of those securities,” he told the E-Commerce Times. “Rumors of Google or Microsoft buying Yahoo have been around for years and, if those were missed, most people in the industry sense how competitive it is and how quickly both Google and Microsoft are dishing out cash for more intellectual property and market share on the Web.”

Read the full story here.

- Richard

Subscribe To this Blog via Email Or RSS

Related Articles:

1. Risk Arbitrage Hedge Fund Strategy
2. Top 5 Hedge Fund Strategies
3. Treynor Ratio

Permanent Link: Institutional Investors Affected by Microsofts Bid for Yahoo

Related Terms: Institutional Investors Affected by Microsofts Bid for Yahoo, MSFT, YHOO, Institutional Investors, Hedge Fund Managers