Thursday, 22 July 2010

Confirmation that asset raising from institutions taking longer

Publicly quoted Swiss hedge fund manager Gottex Fund Management produced second quarter results this week. A comment from CEO Joachim Gottschalk took my eye: "the general (market) volatility has affected the propensity of institutional investors to make asset allocation decisions and as such asset raising efforts have become more prolonged."

So the whole process of selling, from initial contact, through multiple meetings and final due diligence, and then final sign-off on allocations of capital is taking longer and longer. The institutionally driven recovery of the hedge fund business is being stretched out, and in that process funds of hedge funds are not the marginal winners.

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