Your Summer Reading List: A Global Perspective on Alternative Investments

AIFMD & the Death of the Traditional Hedge Fund

May 2012

Summary

“Make no mistake the AIFM directive is going to change the Hedge Fund industry forever. This legislation (now in advanced draft form) effectively marks the end of the free-wheeling unregulated years of the Hedge Fund.

A new era of regulation is upon us and the consequences of this EU Directive means the traditional, secretive Hedge Fund model is effectively dead.

This Global Perspectives White Paper examines the most important proposals from the AIFM Directive and looks at the likely affects this will have for the Alternative Industry” 

The Euro Zone Crisis & what it means for the Hedge Fund Industry?

April 2012

Summary

“When the ECB launched its avalanche of super cheap three year finance earlier this year, many thought the Euro Zone had bought itself a significant breather to try and get its fiscal problems in order. However only a couple of months later (Qtr 2, 2012) the crisis seems to be returning with a vengeance.

This Global Perspectives White Paper analyses the current situation regarding the Euro zone crisis, potential developments over the remainder of the year, and examine what this means for the Hedge Fund Industry, as this crisis moves into its third yea.r”

Managing Change in the Hedge Fund Industry

March 2012

Summary

““It must be considered that there is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things.”–Niccolò Machiavelli (1446-1507), Italian statesman and philosopher, in “The Prince”.

Machiavelli got it right. Trying to successfully manage the implementation of widespread change is one of the most difficult tasks an organisation in our industry can undertake.

Over the last 10 years the Hedge Fund has experienced change on an enormous scale. The first years of the new century were marked by huge growth across the industry. Hedge Fund Managers and their service providers struggled to absorb massive asset growth, a high volume of fund launches and an ever increasing number of investors.

Then came the Post-Lehman/Madoff carnage where funds instead had to manage a more negative period of change, primarily driven by funds reorganising, gates being imposed, irate investors trying to redeem and difficult to price illiquid securities.

All of this has made the last decade in the Hedge Fund industry one of great change. Whereas change ten years ago was primarily driven by positive factors – AUM’s rising, subscriptions into Hedge Funds increasing and positive stock market returns – change in recent years has been the result by more negative trends – increased competition, an unstable economic environment, a wave of new global regulation and far more demanding investors.

This Global Perspectives White Paper examines the main drivers of change facing the industry as well as identifying the key steps for managing this change in the years ahead.”

Growth Markets for Hedge Fund Administrators

Feb 2012

Summary

“The last few years has seen an increase in the importance of the role Hedge Fund Administrators play within the wider Alternative Investment Industry. Increased regulatory requirements, institutional investor pressure and a myriad of Hedge Fund scandals has meant many self administrated funds (particularly in the US) have had to move to a genuine, independent Administrator.

But while this has seen many Administrators increase their assets under administration there is also genuine concern within the industry that the provision of administration is in danger of becoming commoditized and undervalued. Mindful of this downward pressure on pricing, Administrators are targeting additional services that they can offer to their clients and the wider industry.

This Global Perspectives White Paper identifies 5 areas the Hedge Fund Administration industry should make the focus of their growth strategy.

Shane Brett is Managing Director of Global Perspectives, an alternative investment & asset management consultancy based in Dublin & London.

Shane@globalperspective.co.uk

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