Institutional Investors Becoming Increasingly Demanding, Want To Actually Understand Their Investments

Institutional investors need to understand their investments and its performance attribution as never before, a report from Celent, an institutional IT research provider. With the noticeable underperformance of hedge funds throughout the era of quantitative easing – Celent pegs beta during the era near 3% and 5% -- institutional asset managers are demanding to understand how a strategy works and the market environments in which they should be expected to fail or succeed.

Institutional allocators under increasing pressure to justify investments

Under “intense” pressure from their investment committees and executive boards, institutional allocators are increasingly holding the hedge fund managers in which they invest accountable.

“As investment returns within the last number of...