Infovest21 Marketer Sentiment Survey: 29% expect role of third party marketer to become less relevant

Almost 29% of the marketers surveyed in Infovest21’s just-released sentiment survey feel the third party marketers’ role will become less relevant. They cited a variety of factors such as pressure on managers’ profits due to increased regulatory and compliance costs, some states’ ban on placement agents, the expanded role of capital introduction services and the general availability of information on hedge funds.

Another 21% see a continued role for third party marketers, particularly with small and medium-sized firms.

Another 21% said the third party marketer must become more knowledgeable, more sensitive to fiduciary needs, and have relationships with more institutional investors.

The remainder didn’t expect any change in the third party marketer’s role or didn’t have a view.

Global macro rated as top strategy

Lois Peltz, president of Infovest21, commented, “Hedge fund marketers found global macro the strategy of most interest to investors for the second consecutive quarter. Emerging markets and long/short equity ranked second and third respectively.”

With 1 representing the highest ranking and 15 the lowest, marketers rated global macro 2.5, emerging markets 3.2 and long/short equity 3.8.


Sentiment Indicator: Marketers Strategy
Score

Global macro 2.5
Emerging markets 3.2
Long/Short 3.8
Distressed 4.5
Managed futures 5.8
Multi-Strategy 6.2
Fixed income arbitrage 6.4
Convertible arbitrage 8.2
Merger arbitrage 8.4
Market neutral 8.6
Energy 8.7
Asset based lending 9.0
Activist 9.2
Short bias 10.9
Statistical arbitrage 11.5

Strategies having a higher ranking this quarter i.e. attracting more investor interest were emerging markets, distressed, long/short, convertible arbitrage, merger arbitrage, market neutral, energy, activist and short biased.

Meanwhile, multi-strategy, fixed income arbitrage and asset based lending had lower rankings this quarter.

Rankings for global macro and statistical arbitrage were about unchanged from last quarter.


The above are highlights from Infovest21’s quarterly sentiment survey of hedge fund marketers. Full results include marketers’ views on eight investor categories and investor interest by geographic location.