SEI Knowledge Partnership
6 Ways Hedge Funds Need to Adapt Now
Institutional investors and fund managers speak out on what it takes to succeed in a tough climate
For the sixth year in a row, SEI surveyed institutional investors to get their perspectives on hedge fund investing. This year, we complemented our survey by hosting roundtable discussions with top hedge fund allocators in both New York City and London.
The verdict: hedge funds are certainly facing an array of challenges. But while hedge funds may be down, they are by no means out. As the quintessential long-term investors, institutions still want hedge funds in their toolkits, even as they rethink the terms of those relationships.
In our 48-page report, we find that:
- Registered products are making inroads into the institutional market, especially among smaller investors, as well as offering retail and retirement market opportunities
- Institutional clients are increasingly sensitive to how much true alpha they are getting for the fees they pay, and also worry about “diversifying away alpha”
- Client communication provides an ongoing opportunity for funds to differentiate themselves; our survey shows risk management is one of the areas where investors want more understanding of hedge fund methods