Fig.2 Hedge Funds


Please rank the top two approaches your organisation is currently pursuing to achieve growth over the next three to five years


Over $10b


Accessing new investor bases within existing markets


2014 Increasing penetration with


existing client types/markets with current strategies and products


2014


Adding new hedge fund strategies


2014


Launching of new non-traditional hedge fund product types


2014 Top approach Top two approaches


Top approaches to growth $2b — $10b


Under $2b Fig.3 Investors


In which of the following non-traditional hedge fund products do you currently invest or plan to invest, through a hedge fund manager?


Private equity Long-only funds


Best ideas funds or co-invest vehicles


Real assets Insurance


UCITS/European registered funds


Sub-advised funds


US registered funds/40 Act fund


11% 16% 9%


Currently and plan to invest Currently and plan to invest via a hedge fund manager


6% 33% 16% 29%


18% 18%


Yes No


56% 13% 53% 29% 49% 35% 49% 46% 54% Investors


Do you currently invest in or have considered investing


in an emerging hedge fund manager?


“We’ll certainly be doing customised solutions. We’ll certainly be doing separately managed accounts. Whether we’re doing insurance, a full range of alternative products or whether we’re doing private equity that’s yet to be seen. If you want AUM growth, you need products to meet client needs.”


($2bn–$10bn, EUROPE, FIXED INCOME/CREDIT)


investors appear to use other asset managers to obtain these products.


Certain of the products investors are most keen in having exposure to are not traditionally offered by hedge fund managers (i.e., private equity, real assets). Managers need to determine whether they are willing and able to compete with these alternative managers by making the required investments, including acquiring talent and building their brand. Alternatively, managers can


solely focus where investors have demand for hedge fund products.


Additionally, a majority of investors remain committed to emerging managers. These new managers continue to receive a healthy proportion of new capital as they are viewed as nimble and able to deliver alpha by focusing on a core strategy.


As investors become more focused on actively managing their portfolio risk, there will be


49


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