Given the current long-running bull market, with equities up over 15% annually and lower than historical levels of volatility, many advisors who allocated to alternative strategies post financial crisis have been frustrated. After many failed to deliver what people wanted in 2018, we’ve noticed advisors abandoning the space altogether. Given common behavioral biases, we certainly understand that sentiment, but on the other hand, we see larger institutions maintaining or in some cases even increasing their exposure. For example, a new report by Preqin, noted that 26% of institutional investors said they expect to commit more capital to hedged strategies in the next 12 months.
- June 13, 2019
- March 09, 2018
Over the past decade or so, the asset management and advisory businesses have become far more challenging. The forces of creative destruction have been hard at work, calling into question both the value add and fees charged by investment professionals at all levels.