Bay Harbor Islands, FL – 2017
Benefits of Institutional Alternative Investment Managers
Industry research shows that investors’ overwhelmingly prefer institutional alternative investment managers due to their robust infrastructure, enhanced liquidity and transparency, and proven track record.
Proven Track Record
Objective Review – Unlike an emerging manager, institutional managers' performance can be reviewed against their peers and different benchmarks over time to objectively show their ability to deliver “alpha.”
Experience and Longevity – Institutional managers have experience navigating markets and preserving capital during several economic cycles.
Robust Infrastructure, Resources and Stability
Top Talent – Due to their success and prestige, institutional managers have the ability to recruit and retain top industry talent.
Well-Rounded Expertise– By sharing knowledge and information across the firm, these managers create synergies that typically result in better informed trading.
Better Operational Process – Institutional firms are more likely to have senior teams and executive committees dedicated to creating, monitoring and evaluating their operational, trading, risk, legal and compliance processes.
Diversification – Multiple strategies, products and client bases helps ensure they are not depending on a single revenue stream.
Size – As a result of their AuM, institutional managers can usually negotiate better prices and execute transactions that others cannot.
Reduced Key Man Risk – Deep teams exist throughout the firm, thereby reducing the likelihood of key man risk.