Knowledge Keiretsu sat down with Jeff Banfield, in advance of his speaking engagement at “Alternative Investor Opportunities in an Uncertain World” in Toronto October 24th. He is the Founder of Caravel Capital Investments Inc. Family Office and Investment Research. Jeff has extensive experience in investment research, consulting, arbitrage, market management, and is a much sought after speaker at business events globally.
KK: Jeff: There’s been a lot of talk in the past 6 months about hedge fund pricing. Where do you think fees are headed for hedge fund managers?
JB: “Well, that is a good question. In the 80s and 90s a limited supply of hedge funds allowed fees to remain high. In early 2000s new managers flooded the market attracted by the higher fees. Now, we’re seeing fees being adjusted based on skill. The Hedge Fund Industry is a much more balanced market where talent is the price setter and lack of talent is a price taker.”
KK: What are investors asking/needing from their asset managers now versus, say, 12 months ago? What’s changed in your view?
JB: “Investors have always asked for better liquidity, investment limits and transparency. More recently investors want experience, self-imposed restrictions like deferment or reinvestment of fees to align managers with investment term; clients want managers with skin in the game.”
KK: What is the current appetite for Canadian hedge funds?
JB: “We find the demand for Canadian Hedge Funds is very healthy. This is in part due to the lack of returns generated from fixed income and equity based index products. Investors are also reluctant to accept the higher cyclicality of returns the Canadian market offers. I am reticent to endorse hedge fund managers that restrict themselves to one country, whether they are based in Canada or elsewhere. It’s important to take a more global view of risk and opportunity.”
Knowledge Keiretsu’s ‘Alternative Investor Opportunities in an Uncertain World’ series comes to Toronto on Tuesday, October 24, 2017 at the Drake Hotel. Take a look at the full agenda here.
The event will see attendees comprising institutional investors, family offices, HNWIs, seeders, portfolio managers, entrepreneurs and social disruptors meet to discuss the challenges and opportunities investors will be facing in the coming years.
Contact email@example.com to request an invitation to attend and/or for sponsorship information.