{"id":51183,"date":"2016-04-20T02:20:00","date_gmt":"2016-04-20T00:20:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/institutional-investor-appetite-is-back-for-quant-funds\/"},"modified":"2019-12-31T00:39:29","modified_gmt":"2019-12-30T23:39:29","slug":"institutional-investor-appetite-is-back-for-quant-funds","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/institutional-investor-appetite-is-back-for-quant-funds\/","title":{"rendered":"Institutional investor appetite is back for quant funds"},"content":{"rendered":"

The recent CTA performances encourage institutional investors to more closely monitor this type of hedge fund. Thus, according to Preqin, 52% of them wish to increase their exposure to this type of alternative strategy this year (vs 14% last year).<\/p>\n

The recent CTA performances encourage institutional investors to more closely monitor this type of hedge fund. Thus, according to Preqin, 52% of them wish to increase their exposure to this type of alternative strategy in 2016 (vs 14% last year).<\/p><\/blockquote>\n

However, their CTA allocation is generally low, “weighing less than 10% of their hedge fund pocket “<\/em> said Sol Waksman, founder and president of BarclayHedge. Moreover, there are a few thousand institutional investors currently positioned on such funds as shown in the graph below.<\/p>\n

Number of institutional investors invested in CTAs<\/strong>
\n\"nombre_d_investisseurs_institutionnels_detenant_des_ctas.jpg\"<\/a>
\nSource : Preqin<\/em><\/p>\n

According to Preqin, there are currently 1 240 CTAs across the world, given the fact that total net launches were negative last year: 84 against 67.<\/p>\n

Sol Waksman estimated total assets under management at $ 327 billion at the end of 2015, the majority of these assets are in the hands of a few anglo-saxon fund managers including Winton ($ 34 billion) or Man AHL ($ 17 billion).<\/p><\/blockquote>\n

Most of institutional investors are funds of hedge funds (44%) investing in a wide range of alternative strategies, ranging from Global Macro to L \/ S Equity strategies; insurers or banks representing only about a quarter of investors invested in CTAs.<\/p>\n

Breakdown of investors for CTAs<\/strong>
\n\"proportion_d_investisseurs_institutionnels_detenant_des_ctas.jpg\"<\/a>
\nSource : Preqin<\/em><\/p>\n

\"Sol
Sol Waksman, founder and president of BarclayHedge<\/figcaption><\/figure> According to Sol Waksman, CTAs investors tend to favor quantitative funds (nearly 2\/3 of Managed Futures) using systematic trend following models, covering several time horizons, i.e short \/ medium and long term. It is clear that discretionary strategies are much less popular with investors. According to experts, quantitative CTAs offer a more reliable investment approach than discretionary ones.<\/p>\n

Due to institutional investor appetite, Preqin estimates that CTA launches should take off in 2016.<\/p>\n

CTA launches per year<\/strong>
\n\"lancement_de_ctas_par_an.jpg\"<\/a>
\nSource : Preqin<\/em>