Overall, institutional allocators are maintaining their commitments to alternative fund managers, continuing a trend from 2016 when 79 percent of investors increased their overall allocation to alternatives. Likewise, more than two out of three investors (68 percent) surveyed intend to decrease their cash position by the end of the year, indicating a willingness to remain in the market.
Even so, many investors cited political and regulatory uncertainty tied to the new administration as the two biggest headwinds facing the industry.
The second annual survey of more than 200 institutional allocators provides insights into how these investors establish new relationships and explore alternative strategies that help diversify portfolios and mitigate risk. In total, managers, institutional allocators and family offices representing over $3.1 trillion in cumulative assets under management attended Context Summits Miami 2017.
"As many large, brand name fund managers experience performance or reputation issues, the current market environment highlights the need among institutional investors and family offices to build relationships with new managers," said Mark Salameh, Co-Founder and CEO of Context Summits. "This year's survey results reinforce investors' ongoing search for yield and exceptional risk-adjusted returns. With more than 9,000 one-on-one meetings arranged over a three-day period, Context Summits Miami continues to grow and serve as the venue of choice to vet new opportunities, providing fund managers with access to new sources of capital and allocators with access to deal flow."
Ron Biscardi, CEO of Context Capital Partners, added, "Institutional investors and family offices are paying close attention to their alternative portfolios and constantly revisiting their allocations. But despite a difficult market environment, our survey indicates the appetite for alternative investing remains strong."
Additional findings from the survey include:
- Allocators Favor Emerging Managers Over Established Managers: A majority of allocators (59 percent) prefer to allocate to emerging managers rather than established managers, indicating a willingness to seek new ideas and strategies.
- Key Drivers for Evaluating Fund Managers: The top three drivers for evaluating fund managers were Investment Process, Performance and AUM. The three least important drivers were Redemption/Lockup terms, Operations and Track Record Length.
- Performance Expectations Still Sky-High: Despite the willingness to take on less established managers, allocators are seeking high annualized returns, 12.5 percent on average, according to investor respondents.
- Investors Split on Greatest Market Headwinds: Investors identified regulatory uncertainty, the new presidential administration and volatility in global markets as among the greatest headwinds to industry growth in 2017.
Context Summits will publish a detailed report with the complete survey results and in-depth analysis next month, which will be available at www.contextsummits.com.
Context Summits hosts five events each year. The next event is Context NYC 2017, which will be held on April 20 at 4 World Trade Center in New York and followed by the inaugural Context Summits Europe 2017, taking place May 7-9 at the Hotel W Barcelona. For additional information, please visit http://contextsummits.com/nyc/ and https://contextsummits.com/europe/.
About Context Summits
As the preeminent producer of events for the alternative asset management industry, Context Summits focuses on elevating the conference experience through an innovative format and structure where relationship building leads to unmatched results. A pioneer of the one-on-one 'summit' format, Context Summits utilizes an innovative approach to deliver effective and transparent networking events that elevate the conference experience for managers, allocators and investors. Through its systematic approach, Context Summits is able to attract high quality attendees, making meetings efficient and productive. For more details, please visit: http://www.contextsummits.com.
About Context Capital Partners
Context Capital Partners, LP is an alternative specialist company that allocates its capital to talented investment managers and whose subsidiaries offer a diverse range of investment strategies, including hedge funds, liquid alternative mutual funds, and private equity funds. Through its unique approach to evaluating and overseeing highly-differentiated and specialized funds, Context seeks to identify opportunities in both liquid and illiquid markets and serves as a full financial and operational partner for its subsidiaries. Since inception, Context led seed deals totaling more than $400 million in aggregate. The firm's subsidiary businesses include Context Asset Management, Context Summits, Context BH Capital Management, Context Liberty Bell, Context Jensen Partners, and Context Business Lending.
Context Capital Partners is headquartered in Bala Cynwyd, PA. For more information about Context Capital Partners, visit www.contextcp.com.
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SOURCE Context Summits