Reports & Research

October 6, 2017

Seward & Kissel Study Shows Side Letter Usage Rising Among Newer Managers

Side letter agreements supplementing or modifying the standard terms of a fund’s offering memorandum, subscription agreement or constitutional documents to grant preferential treatment to an individual investor, generally as a precondition of a large investment, often provide a revelatory view into the current market dynamics of the hedge fund industry. In its most recent Hedge Fund Side Letter Study, Seward & Kissel LLP found that the hedge fund industry’s use of side letters has dramat Read More »

August 11, 2017

Investors Committed to Hedge Funds and Negotiating More Favorable Terms, Credit Suisse Survey Finds

Investors, who remain committed to hedge funds and are optimistic about the industry’s performance, have continued to negotiate more investor-friendly terms with the hedge fund managers in which they invest, found Credit Suisse’s “Mid-Year Survey of Hedge Fund Investor Sentiment.” The survey also found that investors still have a strong appetite for hedge funds and plan to continue their allocations to the asset class. In fact, investors’ demand for the asset class has increased, and m Read More »

July 28, 2017

Survey Finds Advisers Continue To Take Cybersecurity Seriously; Custody Concerns Loom Larger

The Investment Adviser Association, ACA Compliance Group and OMAM recently released the results of their 12th annual survey of the top concerns of compliance officers working at registered investment advisers. While cybersecurity continued to dominate mindshare as the “hottest” compliance topic, custody—a common compliance deficiency among registered investment advisers, according to a memo released earlier this year by the Securities and Exchange Commission’s Office of Compliance Inspec Read More »

Study Concludes Emerging Managers Profitable at Lower AUM Than Previously Thought; Explores Challenges and Growth Strategies

Emerging asset managers face a challenging road on their path to business sustainability. The chips are seemingly stacked against their success—large startup costs, ongoing infrastructure expenses and investors too skittish to risk their allocations to unproven managers all stand in the way of the asset growth and returns that managers seek. In order to better understand the challenges emerging managers face and the ways they are addressing these challenges, the Alternative Investment Manageme Read More »

May 19, 2017

Citco Survey Indicates Continued Fundraising Challenges for Managers, Benchmarks Sales and Marketing Efforts

A survey recently published by Citco Fund Services and HFM Global sought to better understand hedge fund managers’ asset growth, distribution trends, and sales and marketing strategies in the prior 12 months, and prognosticate results in the near future. The survey results indicate that managers are still facing fundraising headwinds, but that they are slowly and steadily adapting to the new environment. This article summarizes the survey’s key points. Survey Demographics The survey, conduct Read More »

May 5, 2017

Facing Investor Pressure, Hedge Funds Are Experimenting With Novel Fee Structures

It’s an investors market, according to Peltz International’s latest white paper, “Rethinking the Fee Paradigm.” Facing continued pressure on fee terms, hedge fund managers are becoming more flexible, not just in the fee levels they charge, but in how they are structured. Peltz also found that current trends indicate institutional investors are directing their allocations to funds that offer flexible fees, and that newer and emerging managers are better positioned than larger mana Read More »

Barclays Survey Reveals Investors’ Perspectives on Current State of Hedge Fund Industry

Barclays Capital Solutions Group recently published a survey analyzing the steadily evolving asset raising landscape of the hedge fund industry from a variety of investors’ perspectives. Noting a “considerable improvement in sentiment versus a year ago,” the survey offers insight on the current state of the hedge fund industry, participants’ outlook for the year ahead and broader industry trends defining the hedge fund industry. This article summarizes the key findings of the report. Sur Read More »

March 23, 2017

New Hedge Funds Following Trends of Past Years Regarding Structures, Fees and Terms, According to Seward & Kissel Study

Hedge funds faced challenges in launching new funds and raising assets in 2016, and though the industry anticipated a shift, the challenges appear to be settling into multi-year trends. Managers, though, ever resilient, are finding new ways to adapt, according to Seward & Kissel’s recently released annual New Hedge Fund Study, which explored the investment strategies, fee and incentive terms, liquidity terms, fund structures and founders and seed capital raised by U.S.-based emerging manag Read More »

March 9, 2017

Credit Suisse Survey Reveals Appetite and Trends for Hedge Fund Investors in 2017

Last year was tough for hedge fund managers: Nearly every relevant media outlet predicted the decline of the industry, returns were down and the traditional “2 and 20” was declared dead. Despite the gloomy prognostications, global hedge fund allocations have actually reached an all-time high water mark over $3 trillion. Against this seemingly conflicting backdrop, Credit Suisse recently released “Shifting Tides: The 2017 Credit Suisse Global Survey of Hedge Fund Investor Appetite and Activ Read More »

January 26, 2017

ACA Compliance Survey Highlights Trends in Alternative Fund Manager Compliance Programs

Recently, ACA Compliance Group conducted its seventh Alternative Fund Manager Survey exploring hedge fund and illiquid fund managers’ compliance practices, policies and procedures. The survey provides private fund compliance professionals with up-to-date benchmarks for best practices, controls and testing, and regulatory impacts, among other issues specific to the alternative fund management industry. ACA compliance experts Danielle Joseph, senior principal consultant, and Brian Lattanzio, sen Read More »