Institutional Investors and Family Offices Continue Allocating to Alternative Investment Strategies in 2016, According to Latest Context Summits 2016 Allocator Trends Survey

DANA POINT, Calif., Oct. 13, 2016 /PRNewswire/ -- A survey of 100 institutional investors and family offices conducted at Context Summits West 2016 reveals that 92 percent of respondents allocated to two or more funds in 2016 while 73 percent of investors reported a net increase in their investments to alternative investment strategies since 2015. The survey also revealed that 59 percent of allocators viewed the U.S. presidential election as the greatest macro headwind facing the market in the fourth quarter of 2016. In total, managers and allocators representing over $250 billion in combined assets attended the two-day conference, which connects qualified investors with private fund managers via one-on-one meetings.

In February 2016, Context Summits conducted a similar allocator survey at Context Summits Miami 2016. Among the key findings were 79 percent of investors planned to increase allocations to hedge fund managers in 2016. Ninety-six percent of investors plan to allocate in two or more funds in 2016.

"This survey data reinforces the key findings uncovered from our Miami allocator survey, which showed that investors continue to actively evaluate and allocate to new managers," said Mark Salameh, Co-Founder and Chief Executive Officer of Context Summits. "While investors are maintaining a close eye on the upcoming presidential election, the data indicates that investors are positioning their portfolios for the long-term and less concerned with short term price movements in risk assets." 

This survey represents the viewpoint of allocators that attended Context Summits West 2016, who consistently seek opportunities and actively invest within the alternative asset management industry. The report serves as an update from Context Summits Miami 2016 and offers a preview of how allocators are approaching the upcoming US election and 2017.

Additional findings from the survey include:

• Greatest Macro Headwind in Q4 2016: Investors identified the upcoming US presidential elections (59 percent) as the greatest macro headwind to the markets in the fourth quarter of 2016, followed by a possible interest rate hike by the FOMC in December 2016 (35 percent). Investors are less concerned about corporate earnings (3 percent) and China (3 percent).
• Cash Position: Investors indicated a continued interest in deploying capital and seeking risk-adjusted returns as 41 percent of respondents have increased their cash position year-to-date in 2016, while only 25 percent said they plan to increase their current cash position by the end of the year. Comparatively, 62 percent of investors surveyed at Context Summits Miami 2016 in February said they were looking to lower their cash position.
• Preferred Investment Stage: Nearly half (45 percent) of investors indicated they prefer to invest in managers with a track record of three to five years and more than a third (36 percent) of investors seek to identify funds with a track record of less than three years. This is in-line with responses from the Miami survey, where 40 percent of investors looked for a 3-5-year track record and 41 percent looked 0-3-year track record.
• Target Allocation: Nearly two thirds (64 percent) of investors said they plan to allocate to at least two funds in the fourth quarter of 2016. In February, this figure—representing allocations for the remainder of 2016—stood at 94 percent.
• Redemptions: Nearly half (41 percent) of investors surveyed said they had made one or less redemptions year-to-date. A similar percentage (45 percent) have redeemed from two or three funds. This is nearly identical to what investors indicated in February, when 41 percent of investors said they planned to redeem from one or less funds and 40 percent planned to redeem for two or three funds.

Context Summits will publish a detailed report with the complete survey results and in-depth analysis next month, which will be made available at www.contextsummits.com. The results of the Context Summits Miami survey is also available at www.contextsummits.com.

Context Summits hosts four events each year. The next event is Context Summits Miami 2017, which will be held from February 1-3 at the Fontainebleu Hotel, Miami Beach, Florida. For additional information, please visit www.contextsummits.com/miami.

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 Adams Business Credit.

Context Capital Partners is headquartered in Bala Cynwyd, PA. For more information about Context Capital Partners, visit www.contextcp.com.

Contact:
Nick Rust
212.279.3115 ext. 252
[email protected]

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