Allocator Trends 2016 Report by Context Summits

Executive Summary

For 2016, allocators say they are optimistic about alternative asset managers and open to establishing new relationships and exploring strategies that help diversify portfolios and mitigate risk. This was the dominant perception among allocators who attended Context Summits Miami 2016 from February 3-5. Nearly 80% of allocators plan to allocate new capital to hedge funds in 2016, with 57% prepared to invest in four or more funds.

While some findings may be contrary to current market sentiment*, it’s important to consider that this report represents the viewpoint of allocators at Context Summits Miami 2016, who consistently seek opportunities and actively invest within the alternative asset management industry. The purpose of this report is to provide insight into how allocators are approaching 2016.

These allocators remain undeterred by uncertain volatile market conditions and concerns, including fears over a U.S recession, negative interest rates in some parts of the world and the Presidential election process. While allocators see potential headwinds, such as a geopolitical crisis or overcrowding in positions, their enthusiasm remains strong. Cash positions are down dramatically and allocations to alternative asset managers, particularly in funds with track records of five years or less, is growing.

Allocator Trends
Allocator Trends

Allocator Trends – Survey Methodology & About Context Summits

About The Survey & Methodology

The Allocators Survey was conducted to gather insight into allocation trends for 2016 and offer a snapshot into the current outlook for alternative asset managers. The report incorporates survey findings and also reflects one-on-one and small group interactions at Context Summits Miami 2016, held February 3-5, 2016. Data is based on responses from approximately 200 allocators. In total, Context Summits Miami 2016, convened approximately 1,800 industry professionals, including 450 funds and 500 allocators representing cumulative assets under management of $1.5 trillion.

About Context Summits

As the preeminent producer of events for the alternative asset management industry, Context Summits focuses on elevating the conference experience through an innovative format and structure where relationship building leads to unmatched results. A pioneer of the “one-on-one” summit format, Context Summits utilizes an innovative approach to deliver effective and transparent networking events that elevate the conference experience for managers, allocators and investors. Through its systematic approach, Context Summits is able to attract high quality participants, making meetings efficient and productive.

Allocator Trends
Allocator Trends