For every data exhibit in this report, HFM fashioned an actionable insight designed to help a manager think differently about its businesses. Collected here are all 27 ‘Actions’ inspired by the data generated and interviews conducted for Product Customisation.
Traditionally associated with closed-end strategies, such as private equity, venture capital and real estate, co-investments have in recent years become an increasingly common sight among hedge fund managers’ product ranges. In this final section, we assess investor appetite for hedge fund co-investments, the proportion of managers offering them, and the benefits and disadvantages to both sides.
If customisation is the art of delivering customers a bespoke product, then managed accounts are the delivery mechanism of choice for most hedge fund managers. But what began in the wake of the financial crisis as a tug of war between reluctant managers and demanding investors, has descended into a far more lopsided affair. In all but the most extreme cases, managers’ need for inflows has trumped their misgivings over hassle and expense. Section 3 provides the latest on the appetite for managed accounts and the flavours in which they are offered.
The terms hedge fund managers offer their investors remains a hotly debated topic. Whether on liquidity, fees, transparency or elsewhere, investors continue to push back, while managers pursue innovative new models to assuage their concerns. In the second section of Product Customisation we pop the hood on hedge fund T&Cs, with a particular focus on liquidity and the extent to which the tailoring of it is causing concerns among investors.
All signs point towards an increase in product customisation in recent and coming years. But as hedge fund managers seek innovative ways to meet investor needs and win back their trust, how are they going about it? And are investors satisfied with the results? The opening section of this report addresses these key questions in an exploration of the lay of the land.
For every data exhibit in this report, HFM fashioned an actionable insight designed to help a manager think differently about its businesses. Collected here are all 26 ‘Actions’ inspired by the data generated and interviews conducted for Winning New Business 2019.
As the gatekeepers of institutional capital, investment consultants saw their influence burgeon as more and more hedge fund managers sought to institutionalise their businesses with the help of large, sophisticated clients. But, as the performance of many consultant recommendations has dipped, their authority has come under question. Are they still the force they once were? The final section of this report assesses the status quo and explores the best ways to engage.
For most hedge fund firms, institutional capital is the prize at the end of the plan. In 2019, the procurement of institutional investors will be as challenging as ever, exacerbated by their increasingly specific needs and specialised expertise, and their growing confidence they can wring customised requests out of everyone but the largest brand-name managers. Our third section identifies the products likely to pique institutions’ interest and tips likely to maximise managers’ chances.
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