Opportunity sets in 2009 and beyond.....

·The massive dislocation and global financial crisis has brought:
–Unprecedented changes in the market that will continue to drive investor demand for the highest quality managers, interesting managers with an edge, best surviving athletes, niche strategies and managers with pedigree
–Liquidity, transparency, “road-tested” risk management , and an institutional platform are in high demand
–Managers that did not impose gates and those whose capital pools, liquidity and infrastructure are still intact should prosper
–Institutional investors with liquidity, flexibility to allocate and the ability to look through the current environment towards the present day opportunities are focusing on the following strategies: global macro, equity long/short, CTA’s with a focus on absolute returns, credit strategies (distressed, bank debt, ABS/MBS, DIP Funds)
–Greater transparency needs and regulation will raise barriers to entry so those with strong institutional relationships and ability to identify and access capital should be in a much better position to prosper
–Clients have become more interested in separate managed accounts (SMA) however many still do not understand what that means and the problems associated with them. Managers will need to be very flexible in how they partner with LP’s as the future structure of relationships will focus on clients’ needs, managers skill set and ability to provide multiple investment structures
–Clients are looking for managers with extensive, relevant experience who have had success through several investment cycles with emphasis on the current cycle