Global hedge fund and investor survey 2012

Manager selection criteria and redemptions

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The industry remains, emphatically, a “people” business.

Hedge fund managers believe that past performance is the top criterion that investors use to select a manager. However, our survey shows that investors identify the investment team (82%), risk management (70%) and clarity and consistency of investment philosophy (66%) as the three most important screening criteria.

Managers overwhelmingly (86%) cite performance as the primary reason for redemptions. Investors (86%) also see this as important, but they are almost equally inclined (84%) to take their assets elsewhere when there are changes in key personnel. The industry remains, emphatically, a “people” business.

Hedge funds:

Aside from factors that a manager cannot control, which two or three of the following are the most common triggers for redemption?

Chart: Aside from factors that a manager cannot control,which two or three of the following are the most common triggers for redemption?

Investors:

Aside from factors that a manager cannot control, which two or three of the following would cause you to redeem assets?

Chart: Aside from factors that a manager cannot control,which two or three of the following would cause you to redeem assets?

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