Engineer says: "Investors clearly prefer greater use of equity in both the management company and funds, accompanied by deferrals and clawbacks. Managers may need to do a better job aligning their compensation arrangements with the objectives of their investors."Selection criteria and redemptions Performance will always be a key consideration for investors when selecting a fund manager, but it is not necessarily a barrier to investing. Hedge fund managers believe that historic long- and short-term performances are two of the top criteria that investors use to select a manager. However, the survey results show that investors identify the investment team (82%), risk management (70%) and investment philosophy (66%) as the three most important initial screening criteria. This suggests that during initial selection, confidence that managers can generate strong future returns is more important to investors than actual past performance.
Perceived Benefits Of Hedge Fund Regulation Deteriorates Among Investors, According To Latest Ernst & Young Global Hedge Fund Survey
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