Hedge fund managers are becoming more innovative and open to negotiation over fees in return for the ability to lock in assets for longer.
According to a survey conducted by the Alternative Investment Managers Association (AIMA), managers are changing their business models and “exploring a broader set of arrangements designed to improve the alignment of interest between themselves and their investors”.
The study, In Concert, is, AIMA claims, the most extensive undertaken by the association into the design of manager remuneration, investment terms and other methods of deepening the relationship with investors.
The Alternative Investment Management Association (AIMA) has announced a new chairman and the formation of a new AIMA Council, the Association’s global board of directors.
Taking over as AIMA Chair is Simon Lorne, vice chairman and chief legal officer, Millennium Management. He replaces the former SEC commissioner Kathleen Casey, who served as chair of AIMA from September 2012.
AIMA has also announced four new additions to the council – Robyn Grew, chief administrative officer and general counsel, Man Group; Han Ming Ho, partner, Sidley Austin; Ryan Taylor, partner and global head of compliance, Brevan Howard Asset Management; and Michael Weinberg, senior managing director, chief investment strategist, Protégé Partners.
Hedge fund managers are increasing their investment in technology to create competitive advantages and address regulatory and operational concerns, according to a new study by KPMG International, the Alternative Investment Management Association (AIMA) and the Managed Funds Association (MFA).
The study polled more than 100 global hedge fund managers representing approximately $300 billion in assets under management (AUM) and found that 90% of these firms are investing in technology to improve controls and compliance. A similar amount, 88% of respondents, said that efficiency objectives were their top reason for investing in technology.
A new survey of hedge funds finds that almost half of respondents believe that decreased market liquidity “is a secular shift that is here to stay”.
The study was conducted by State Street in partnership with the Alternative Investment Management Association (AIMA). It finds that regulations stemming from the 2008 financial crisis, coupled with historically low interest rates and slow rates of growth in the global economy, have constrained the ability of many banks to perform their traditional roles as market makers, which in turn has impacted broader market liquidity conditions.