WEST PALM BEACH, FL (HEDGECO.NET) – Following the SEC�s recent vote to require hedge fund managers overseeing over US$25 million to register, many Advisors said they are looking to allocate more oftheir client�s investment assets into hedge fund portfolios. The final vote on the SEC�s proposal will be undertaken in 60-days, following the comment period for individuals interested to make theirremarks over such issue.
According to Jeff Joseph, managing director at Rydex Investments, this proposal by the SEC �will cause advisors to re-evaluate these products, It eliminates one of the barriers.” Joseph noted. Other Advisors seem to be mirroring this trend as well. Another manager, Harold Evensky, the chairman of Evensky, Brown & Katz, a Florida based advisory firm said the recent SEC ruling has made the option of investing his client�s money more real. Evensky said, “We would be more inclined to look more carefully at them and more inclined to use them.�
Growth of global hedge fund industry continues to be strong, as new hedge fund laws have been introduced in places like Germany, India, China, Japan and others. New hedge fund vehicles are also being introduced as investor demand continues to grow stronger. The growing desire of investment Advisors to put more of their client�s assets into hedge funds indicates that the level of assets managed by the global hedge fund industry will continue to grow, irrespective of the actions of the SEC.
New studies show a change in asset allocation ratios from traditional 70/30 ratios of equities to bonds, to 50/30/10 ratios, between equities, bonds, and hedge funds. They also noted that emphasis is shifting away from the �one size fits all� approach to �a framework that considers the particular facts and circumstances for the particular investor.
New clients are asking their advisors about hedge fund investments, Dennis Carpenter president of Grapevine, an international wealth manager in Texas said. He is more likely to begin recommending hedge fund instruments, he said such actions helps to �peel away a level of mystery for the end user and gives you a higher level of comfort.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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