Superrich investors are trading hedge funds for private equity and real estate

The world’s super rich are continuing to pull money from hedge funds amid concerns over high costs and poor performance — but appetite for other alternative assets is growing.

This trend among hedge funds’ traditional client base mirrors one seen in the institutional market and will put extra pressure on managers that have struggled in recent years to fulfill the promise of high returns for high fees.

Family offices — private firms that run investments for affluent families or individuals—that have been invested in hedge funds for a number of years reported a 1% drop in these allocations in 2016, according to the latest Global Family Office Report from UBS.

Source: MarketWatch

 

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