NEW YORK, NY–(Marketwired – Feb 18, 2015) – When you’re a hedge fund manager, it pays to listen to your investors, Institutional Investor’s Alpha‘s latest Hedge Fund Report Card survey reveals.
Several firms that earned an A grade in this year’s Report Card had previously received poor grades in earlier rankings. But after making efforts to become more transparent with investors, increase access to portfolio management teams, improve liquidity terms and do a better job of communicating with investors, these firms greatly improved their overall scores. Among the most improved are The Children’s Investment Fund Management U.K., Magnetar Capital, Millennium Management and Two Sigma.
The survey also illustrates that the hedge fund industry is growing up: With hedge fund clients evolving over the years from private individuals to public pension plans, endowments and charities, managers have recognized the need to become more accountable and responsive.
“The results show that how hedge fund firms treat their investors does matter,” says Michael Peltz, editor of Institutional Investor’s Alpha. “Strong performance alone is no longer enough to guarantee a good relationship with investors if they feel they are being treated poorly. Being more open and accessible to investors may even help managers when their funds are going through a rough patch.”
This year marks the sixth iteration of the Hedge Fund Report Card. Thanks to a strong response among investors surveyed, 58 firms are ranked and graded this year, up from 47 in 2014.
Survey results reflect the opinions of pension funds, endowments, foundations, funds of funds and other institutional investors. Each year we ask these investors to rate the firms in our annual Hedge Fund 100 ranking of the world’s largest hedge funds. Only investors that had money in the 100 hedge fund firms in the 12 months before polling are surveyed.
Investors score the funds on eight attributes: Alignment of Interests, Alpha Generation, Independent Oversight, Infrastructure, Investor Relations, Liquidity Terms, Risk Management and Transparency.
Of the ranked firms, 14 earned an A grade. The remaining ranked firms include 15 B’s, 17 C’s, 8 D’s and 4 F’s.
The full Hedge Fund Report Card ranking is available in the Winter 2015 edition of Institutional Investor’s Alpha and online for subscribers at www.institutionalinvestorsalpha.com. For more information, visit the 2015 Hedge Fund Report Card.
About Institutional Investor’s Alpha
Institutional Investor’s Alpha is a leading provider of news, analysis and rankings for the hedge fund industry, delivering the most insightful, entertaining and authoritative published content about hedge funds online and in print. Alpha is a publication of Institutional Investor, a leading financial publishing and information company for close to 50 years. Visit www.institutionalinvestorsalpha.com for more information.
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