Agecroft’s Steinbrugge on Hedge Fund Strategies, Fees

The video discusses the financial market trends of 2016, highlighting the challenges faced by stock pickers and the tough first quarter. It then shifts focus to 2017, exploring changes in investment strategies, particularly the movement of funds away from high market exposure strategies. The discussion covers hedge fund fees, performance, and the importance of diversification and risk management. Emerging trends for 2017, such as the potential decoupling of bonds and stocks and the rise of non-correlated strategies like CTA and reinsurance, are also examined.

What was a major concern for pension funds in 2016 that influenced their investment strategies?

• Political instability

• Currency fluctuations

• High equity valuations

• Low interest rates

How did hedge fund fee structures change over the past year?

• Fees increased significantly

• Fees were eliminated entirely

• Fees remained the same

• There was a huge compression on fees

What is a potential impact of zero percent fee passive funds on active managers?

• Increased competition

• Less regulatory oversight

• More market exposure

• Higher fees

Why is diversification important for pension funds according to the transcript?

• To manage tail risk and ensure stability

• To minimize management fees

• To focus solely on equity investments

• To maximize short-term gains

Which strategy is mentioned as having no correlation to the equity or fixed income marketplace?

• Direct lending

• Equity funds

• Fixed income portfolios

• Currency trading