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Consultants’ interest in hedge funds at three-year high
12 March 2020
Institutional investors and consultants use eVestment’s platform daily to view the product profiles of traditional and non-traditional (hedge fund and similar alternatives) strategies. The changing proportion of all possible views captured by hedge funds is a useful barometer of institutional interest toward the industry.

Hedge funds have been capturing an increasing proportion of available interest on eVestment’s platform (blue line in chart below). December 2019 marked the highest level of interest captured in the last three years. While there was a dip in January, the amount of interest captured was still well above normal, and close to the second highest level captured in the last three years.

Consultants have recently accounted for a rising proportion of views directed toward hedge funds and similar alternatives. Consultant’s interests in hedge funds, relative to investors (allocators), increased to a three-year high in January 2020.

Hedge fund viewership on eVestment

Source: eVestment

Platform views percentage captured by hedge funds/alts (line, left) and distribution of hedge fund/alts views by client type (fill, right)

Managed futures had biggest increase in viewership

Of views directed specifically to hedge funds in January, managed futures saw the largest increase in the amount of viewership captured during the month compared to the prior twelve-months. The viewership captured in January was the second highest level seen in the last three years, second to April 2017. For historical reference, one month prior in March 2017, managed futures had elevated performance losses, but also had received meaningful allocations for two consecutive months, meaning at that time interest was understandably high.

More recently, managed futures have been rebounding from two consecutive months of elevated performance losses (Sep-Oct 2019), which likely influenced this current wave of redemption pressure. Performance has improved, however, and so it will be interesting to see what comes of the recent increased levels of attention.

Long/short equity saw the largest decrease in viewership in January compared to the one-year prior. The strategy still captures more interest than any other hedge fund segment on eVestment’s platform, however the proportion captured has come down from three-year highs in mid-2019. It was noted earlier that while equity strategies enjoyed inflows to begin 2020, the breadth of success was relatively low.

Managed futures viewership

Source: eVestment

Long/short equity viewership

Source: eVestment

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