Carlyle Hedge Fund Exit Highlights Alts Growth Limits
By Lydia Tomkiw November 09, 2016
“Private equity shops entering the hedge fund space need to be open-minded about the toolkits they use when approaching another sector and assemble the best teams possible, says Chris Cutler, president of Manager Analysis Services.
“Both private equity and hedge funds are exceptionally difficult businesses and for someone in one of those businesses to think they can do the other with the same toolkit is a big mistake,” he says.
By Lydia Tomkiw September 21, 2016
“Lower fees and options such as clawbacks are giving investors more leverage,” says Chris Cutler, the president of Manager Analysis Services. He sees terms becoming more favorable to investors, but argues that a large portion of funds still may have a good future even with a lower fee structure and lower revenues.
“I think about those terms more along the lines of investors demanding better economics than an effort for alignment of interests,” he says in an email to FundFire. “If you think about the revenue impact of these trends on the industry, you will note that they are material and ultimately affect compensation levels.”
By Rachael Levy June 29, 2016
“Many negotiations are seeking better ways to match incentive fees with alpha creation, efforts that are often tailored for specific strategies,” says Chris Cutler, founder of Manager Analysis Services, an investment consultant.
“In particular, for distressed, structured and levered credit, and long-biased equity managers, too much of the incentive fee often gets paid as a result of underlying beta performance rather than on the alpha performance of a manager,” he says.
By Rachael Levy January 13, 2016
“Institutional Investor confidence in hedge funds also is steadily decreasing,” Preqin says. In 2013, 21% of investors said hedge funds met their expectations. In 2015, just 9% did. But investors don’t seem to be losing interest in hedge funds, says Chris Cutler, CEO at Manager Analysis Services, an investment consultant.
“While last year’s performance hurt on average, there is such dispersion in performance across hedge fund strategies that I don’t expect last year’s performance will have a material effect on the decisions of more sophisticated allocators,” Cutler says.
By Rachael Levy December 23, 2015
“Indeed, institutional investors tend to look at activist funds as longer-term investments, potentially with a three-year outlook,” says investment consultant Chris Cutler, CEO at Manager Analysis Services.
By Rachael Levy August 19, 2015
“There is a bit of a run for the door to get out of commodities managers,” says Chris Cutler, CEO at Manager Analysis Services. “But it’s not a permanent one, and money can easily come back in the space once the markets become a little calmer.”
