I was alerted to two articles at http://www.finalternatives.com regarding manager selection. The first article contained the results from SEI, "a leading global provider of asset management, investment processing and investment operations solutions for institutional and personal wealth management", (Source: http://www.seic.com/enUS/about.htm) and Greenwich Associates. Of 111 investors asked, 54% planned to increase their asset allocation into hedge funds. The top two criteria were investment process transparency and risk management abilities of the firm. The article can be accessed here.
The second article is an interview with Hal Daughdrill, Chairman of Diversified Trust Company. This is repetitive but the most important factors for selecting a manager are people, process (for stock selection and portfolio management) and structure (how much the manager has invested in the fund, liquidity, fund lockup provisions, etc.). He also mentions that not being located in New York can be an advantage. The article can be found here.
No comments:
Post a Comment