A BarclayHedge survey of 134 hedge fund managers in July has
revealed that 36.6% of survey respondents currently offer reduced or no fee
alternatives to their investors and a further 20% plan to offer lower or no fee
products in the next three-to-six months.
“The hedge fund industry has been under pressure to offer
lower fee alternatives for some time,” says Sol Waksman, founder and president
at BarclayHedge. “We expect that these pressures will continue and that low or
no fee products will continue to grow.”
Also in the survey, managers continue to favour equity
markets as the asset class most likely to outperform and confidence in
developed markets fell to the lowest level since 2013. Overall, managers are
less positive on the dollar and crude oil but more bullish on gold.
There was little change on managers’ expectations for the
Dollar Index as neutral sentiment predominates at 52.0%. Bullish opinions,
which were as high as 60% in November, remain in the low range at 23.5%,
The survey also found a slight. but within normal bounds,
bias of 4.6% to increasing leverage, but confidence in developed markets fell
to the lowest level since February 2013 but still remains above 50%. Frontier
markets dipped slightly while emerging markets rose 9.3% to 38.9%.