Research shows private bankers still favour hedge funds. Managers not convinced though

Managers not so convinced.

Today, we bring you a couple of related tidbits we recently found buried deep within seemingly non-hedge fund research reports…

Private bankers, stung by Madoff, still see hedge funds as central to their business

It’s generally recognized that the Madoff Affair hit individual investors harder than it did institutional investors – and in doing so, precipitated an exodus of high net worth investors away from hedge funds in general.

But a survey by PWC published recently shows a different picture.  The firm’s 2009  Global Private Banking and Wealth Management Survey shows that private bank executives still see hedge funds and structured products as being central to their business in the next two years.

As the chart below shows, 70% of private banking heads say these investments are either “important” or “very important” parts of their business over the next 24 months.

private banking

Along with “new investments” (such as, say, hedge funds and structured products) these investments also had rock-bottom disapproval ratings.

If you’re in the private banking industry, you’ll find this to be an interesting read.

Master of the Universe revealed to have human fears

A recent survey of hedge fund managers by tax consulting firm RSM McGladrey suggests that despite apparent bravado, most hedge fund managers really are concerned about their investors taking their ball and going home.  Fully two-thirds of managers said this was either a “minor” or a “major” concern.

rsm1

In fact, “lack of new investors” was cited as one of the leading causes of manager insomnia…

rsm4Still, few are trying to create new lock-up mechanisms to hold on to investors…

rsm2

This is an interesting survey since it pierces the Teflon out shell of hedge fund managers and reveals a series of worries that aren’t often part of the official hedge fund industry script.

Maybe they should read the forecasts made by the private bankers for some comfort…

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2 Comments

  1. Leslie Baker
    August 4, 2009 at 3:29 pm

    About RSM McGladrey Inc.
    RSM McGladrey Inc. is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they work together to serve clients’ business needs. Together, the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is the official accounting, tax and business consulting firm of The PGA of America.


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