Investor Survey Project
2010 - Institutional Investor Survey
The purpose of the survey was to better understand the views of major institutional investors on a range of topics including allocation intentions, various asset class trends and alternative investments. One hundred seven (107) investors participated, representing the U.S., Europe, Middle East and Africa (EMEA), and Asia Pacific markets and representing approximately $2.1 trillion in assets under management. Institutional investor respondents are considerably more bullish about alternative investments than traditional equities and fixed income - by a large margin. Reflecting this bullishness, respondents expect to allocate a considerably higher amount of capital to alternatives than to any other major asset class. In fact, almost two-thirds (63 percent) of respondents plan to increase their asset allocation targets for alternatives over the next 12-24 months.
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2008 - Survey of Investors' Preferences
The key findings of this survey are shocking. The great credit crisis of 2007-2008 has unfolded into a global market meltdown. A massive repricing of risk is under way. Alternative investments have always been on the leading edge of capital allocation. Investors who commit capital to alternatives are the clearing mechanism for the marketplace. Thus it is our belief that the behavior of the Limited Partners is a leading indicator. More specifically, the fund of fund's investor is the canary in the coal mine. Their behavior in the form of hedge fund redemptions is setting the price of the markets. In the equity markets, for example, the absence of buyers on the floor of the major stock exchanges has caused the smallest sell order by a hedge fund to allow prices to gap down. Hedge funds are being redeemed by their investors because they are liquid, un-gated or they are underperforming. Thus the behavior and the preference of these investors is an early warning system for market action.
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2007 - Survey on Due Diligence Practices among Investors in Alternative Investments
The key findings are that these managers and advisors take the practice of due diligence seriously, follow a generally consistent set of practices, but modify approaches based on affiliation, assets under management (AUM), and strategy. Consistent application of practice includes verification of manager credentials, vendor and third party relationships, and auditor tenure and reputation. Before making an investment decision, the typical amount of time devoted to due diligence is one-to-three months and more than 20 percent of respondents typically devote more than six months to due diligence. Fewer than 15 percent of organizations allow investments without additional approvals subsequent to the due diligence process.
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