Here’s today’s sign that institutional investors need to get their act together: “Compensation is up and performance is down at hedge funds globally this year.”
Come on, team... can we stop signing up to external management agreements that completely distort incentives and misalign interests between asset owners and asset managers? Can we? Please?
Actually, according to a State Street analysis of investors’ behavior, it seems most can’t:
“...institutional investors are moving into more complex asset classes, particularly alternatives such as private equity and infrastructure. However, many are unprepared to handle the challenges of such investments, citing ‘complexity relating to increased investments in alternatives’ as their main challenge...”
Be afraid...
