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
Raccat launches securities finance dealership platform
25 May 2017 | London | Reporter: Drew Nicol
BNP Paribas’s David Raccat has decided to go it alone with the launch of Wematch.SecuritiesFinancing, a web-based tool aiming at disrupting the dealing process of securities financing markets
Northern Trust expands UAE operations
24 May 2017 | Abu Dhabi | Reporter: Stephanie Palmer
Northern Trust has opened a new branch office in Abu Dhabi, as part of a continuing focus on business in the UAE
R3 raises record funds for DLT development
24 May 2017 | London | Reporter: Stephanie Palmer
The R3 group has raised $107 million in two tranches of fundraising, securing the largest ever investment in distributed ledger technology to date
Faber joins Actualize Consulting as collateral chief
24 May 2017 | New York | Reporter: Drew Nicol
Actualize Consulting has brought on Mark Faber as managing director of collateral management services
EquiLend hires Hollyoake for post-trade team
23 May 2017 | London | Reporter: Drew Nicol
EquiLend has secured Emily Hollyoake as a post-trade product specialist
Lacklustre T2S take up drives volume drop-off
23 May 2017 | Frankfurt | Reporter: Drew Nicol
Clearstream warns of T2S’s failure to galvanise the market as its monthly volume slips 13 percent for April
IHS Markit signs Day for SFTR team
22 May 2017 | London | Reporter: Drew Nicol
IHS Markit has welcomed Stuart Day to its Securities Financing Transactions Regulation team