WHY: Institutional investors are leveraging hedge fund strategies to maximize their portfoliosâ performance while minimizing risk. In contrast to the goals of private investors looking to squeeze the highest returns out of their investments, low correlation is a more important factor for institutions. And with big bond portfolios, they look for hedge strategies that have a risk profile closest to fixed-income: returns of 10-15% and low volatility.
Advent's Peter Hess, Senior Vice President and General Manager of Adventâs Global Accounts Business, says, "Hedge funds see institutional investors as key to their growth and success. They will require the help of their service and technology providers to satisfy demands from their institutional clients for both investment and operational risk management.
Additionally, traditional long-only institutional asset managers recognize the importance of offering competitive hedge fund product to grow their businesses. Introducing hedge fund product requires that even firms with mature technology and operations modify and enhance their operational processes and technical infrastructure.
The challenges faced by hedge funds and traditional institutional asset managers in preparing for institutional hedge fund investment represent strong growth opportunities for the firms who adapt most effectively, both in terms of providing solid investment performance, as well as establishing infrastructure and processes to minimize operational risk."
WHO: Advent spokespeople are available for a detailed discussion on the key drivers of the trend, what this now means for asset managers and the hedge funds in which they invest, and how institutional asset managers and hedge funds are coping with the demands for watertight operations.
**Interviews will be scheduled with the appropriate subject matter experts upon request. **