Everyone understands the consequence, opportunity and factual nature of change, and equally, the immediacy of it in today’s market. Disruption and evolution have been shaping the industry and will remain as the headline of tomorrow. Shifting market dynamics, changing investor preferences and constant technology advancements have the industry contemplating an uncertain future. While focusing forward, managers are trying to maintain their footing and capture a competitive advantage, but equally, they are trying to leverage options that keep them ahead of a market on the move.
As we entered this past decade, hedge funds and private equity funds occupied two distinct realms within the larger universe of alternative investments. Convergence swept across the market with a cross-migration of talent and capital, in addition to a number of new entrants in the competitive landscape. Today, investment managers are embracing divergent strategies as investor preferences are reshaping how they view alternative managers of all definitions. While the overall allocations to alternative investments remain robust, investors are rapidly reallocating within their alternative portfolios. Those managers positioning themselves for success would be wise to look back at how much the industry has evolved in the past decade and strategize for the seismic changes that will shape the industry in the decade to come. The issues and questions facing managers today are far different than those of the past. However, the ability to quickly react, respond and plot a path forward will determine who will thrive and who will struggle to get out of the past.
We are confident that the insights gleaned from the 13th annual EY Global Alternative Fund Survey offer a uniquely singular focus on the points of view of both hedge fund and private equity managers, as well as institutional investors who allocate to both asset classes as well as broadly across alternatives. We deeply appreciate and extend our gratitude to the managers and investors who provided their points of view into the direction and development of this survey, as well as offer thanks to the more than 200 managers and 60 investors who provided detailed and timely responses to provide such comprehensive and thorough results. We believe this collection of perspectives will be instrumental in helping you build more informed decisions and maintain your forward focus.
EY – When Focusing On The Future, Where Do You Look? An Extract – Part 1.