08 March 2017
London
Reporter: Mark Dugdale
Hedge fund assets tipped to rise
Performance-based gains will drive hedge fund assets to reach $3.14 trillion by the end of 2017, a new survey has predicted.

Deutsche Bank’s annual alternative investment survey of 460 global hedge fund investors revealed that close to three quarters expect their portfolios to perform better in 2017 than they did last year.

A breakdown of 2016 showed significant return dispersions in hedge fund performance, with top quartile funds returning +11.22 percent on average, while bottom quartile managers were down -6.86 percent.

Investors, who are paying management and performance fees of 1.59 and 17.69 percent, respectively, are increasingly turning to quantitative strategies to boost returns.

Some 79 percent of all respondents to Deutsche Bank’s survey allocate to systematic strategies, up from 70 percent last year. Close to half of survey respondents also plan to increase their allocation this year.

Marlin Naidoo, Americas head of the hedge fund capital group at Deutsche Bank, said: “The rise of quant is accelerating with 79 percent of investors allocating to the space.”

“The number of strategies available has been growing and now range from simple low fee alternative risk premia products to more complex high alpha products that have seen further enhancements due to the advances in areas such as machine learning, quantum computing and the cloud. This has contributed to the additional interest and demand.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Stock loan falls short for buy side as liquidity source
25 July 2017 | London | Reporter: Jenna Lomax
Securities lending was voted the least popular source of liquidity in a survey of European buy-side heads of operations
Hedge fund H1 gains best since 2009
25 July 2017 | London | Reporter: Drew Nicol
The hedge fund industry has recorded one of its strongest H1 performance periods since the financial crisis, according to data and intelligence provider Preqin
Calypso gains stake in Sernova Financial
25 July 2017 | London | Reporter: Drew Nicol
Sernova Financial, which already leverages the Calypso Cloud platform, recreates the shared infrastructure and service items of clearing brokers
RMA keynote The Mooch heads to the West Wing
24 July 2017 | Naples | Reporter: Drew Nicol
Anthony Scaramucci, who appeared as keynote speaker at last year’s RMA securities lending conference in Florida, has been appointed as the White House communications director
Northern Trust’s Q2 lending revenue stutters
24 July 2017 | New York | Reporter: Drew Nicol
Northern Trust saw its securities lending earnings fall to $24.6 million in Q2
New recruits for BNY Mellon's alternative investment team
21 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has made two senior appointments to its alternative investment services team
Euroclear achieves record-breaking H1 collateral volume
21 July 2017 | Frankfurt | Reporter: Jenna Lomax
Post-trade service provider Euroclear saw achieved "record levels" of collateral outstanding through its Collateral Highway in the first half of 2017