Credit Suisse Releases 2019 Hedge Fund Investor Survey

NEW YORK, May 1, 2019 /PRNewswire/ -- Credit Suisse today released its 2019 Hedge Fund Investor Survey, entitled "Trimming the Sails", which polled over 310 institutional investors globally representing $1.12 trillion in hedge fund investments. Participants were surveyed on a number of topics, including key industry trends and forecasts, as well as strategy preferences and allocation plans for 2019.

Key highlights from the 2019 Credit Suisse Hedge Fund Investor Survey:

• Customized Offerings Dominate Capital continues to flow to non-traditional products. 58% of allocations over the past 12-18 months were directed to alternative structures, principally Bespoke Managed Accounts and Co-Investments. Growing interest in customized mandates has led investors to optimize their existing hedge fund relationships, developing holistic partnerships with a concentrated group of managers. The result is a consolidation of hedge funds in allocator portfolios, where the average number of managers in a portfolio (31) is down 35% from 2009.

• Investors Bucket Hedge Funds by Asset Class An increasing number of allocators are integrating hedge funds into their overall portfolio. 42% of investors now categorize hedge fund allocations by an underlying asset class (eg. Equities, Fixed Income) instead of the static, 'Alternatives' tag.

• Hedge Fund AUM Recycled within, not Removed from the Industry Redemptions from managers will largely be recycled and stay in the industry. 89% of investors who redeemed from hedge funds in 2018 expect to recycle that capital to other hedge funds, with an increasing amount accruing to managers already in an allocator's portfolio.

• Manager Selection Factors Performance and downside protection remain paramount evaluation factors for established firms. For new launches, pedigree and performance were most valued, along with a new top factor, the state of the C-Suite team.
  

Joseph Gasparro, Head of Content for Credit Suisse Capital Services Americas, commented:

"Allocators continue to recalibrate how they employ hedge funds. Preference is shifting to customized solutions through Managed Accounts and Co-Investments that tailor fit specific investment objectives, exposures, and risk parameters. At the same time, investors are increasingly looking at allocations through the lens of their overall portfolio, converging hedge funds with traditional asset classes."

Melissa Toma, Co-Head of Credit Suisse Capital Services Americas, said:

"Investors are staying the course on their hedge fund exposure. It is important to highlight they are focused on re-underwriting their existing portfolios; reducing the overall number of positions and sizing up where they have conviction. Investors are focused on growing relationships with managers who have differentiated expertise, strong risk management skills, and a clear track record of being accretive to an investor's portfolio."

About the Respondents
The Survey covered institutional investors on a global basis, including Pensions, Endowments, Foundations, Consultants, Private Banks, Family Offices, and Funds of Hedge Funds. 52% of responses came from the Americas, while 32% were from EMEA-based investors and 16% were from APAC.

Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. Credit Suisse employs approximately 46'200 people. The registered shares (CSGN) of Credit Suisse AG's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Credit Suisse Prime Services
Credit Suisse Prime Services delivers outstanding core financing and operating services that hedge fund and institutional clients require, including start-up services, product access, high-touch client service, financing, access to sources of capital, risk management, and managed lending. Prime Services delivers the strengths of Credit Suisse's investment banking, private banking and asset management business to a focused number of clients. As a partner, Prime Services is committed to bridging the gap between idea and execution and ultimately functioning as the provider of choice for both the alternative and traditional investment communities. Credit Suisse Capital Services is part of Credit Suisse Prime Services and is responsible for introducing hedge fund managers to a broad range of institutional investors (including Funds of Hedge Funds, Family Offices, Private Banks, Endowments and Foundations, and Public and Corporate Pensions) who are seeking to allocate capital to Hedge Funds.

This is not investment research and is intended for institutional, professional or accredited investors only.

SOURCE Credit Suisse

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