WEST PALM BEACH, FL (HEDGECO.NET) – Michael Goldman of Pioneer Investments is worried that constant switching of assets in and out of hedge fund portfolios may be harmful to the hedge fund industryas a whole. Goldman said that long-term relationships with managers remain the goal of his firm.
Goldman explained that recent interest in hedge fund investments by institutions and pension funds has helped to increase assets and boost due diligence requirements many times over. According to him, corporatization of the hedge fund industry has brought some good benefits; among them is the higher standard of corporate governance among hedge funds.
Another principal, Nigel Meir, said that the growing interest of pension funds in the hedge fund industry would also bring a big shift to the industry. According to him, that is the direction where the hedge fund industry is heading. He also noted that most pension funds investing with hedge fund managers do not care about low liquidity.
A recent survey conducted by Pioneer Investments, showed that 16% of the firms included in the study have made investments with hedge fund managers. The survey is based on responses from 94 of the biggest 500 pension fund managers in the U.K., with combined assets of $140.73 billion. Another 33% of the funds said they are actively looking to invest money with hedge fund managers.
Meir however noted that pension funds are still caught up with their misconceptions about the risks of investing in hedge funds. Once they get over such issues, significant number of pension fund managers will devote a higher percentage of assets into hedge fund management portfolios.
Pioneer Investments is a global investment manager having a full offering of asset management solutions tailored to a wide spectrum of investors. Products offered include mutual funds, single strategy funds, funds of hedge funds, managed accounts and structured products.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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