Freddie Parker
Showing 1–2 of 2 transcripts.
- Goldman Sachs19 min
Why Hedge Funds Are Turning to the Private Markets
Kristin Kramer, Freddie Parker, Allison Nathan
Hedge funds are rapidly expanding their private market exposure in 2021 by deploying $153 billion across 770 deals, driven by extended corporate lifecycles, soaring valuations, and the strategic need to secure IPO allocations. Predominantly led by equity long-short managers in the TMT and Healthcare sectors, these firms utilize late-stage investments to access high-disclosure environments while offering volatility dampening and lifecycle investment capabilities distinct from traditional private equity. This structural shift is reshaping capital market dynamics as investors adopt specialized vehicles like side pockets and hybrid funds to balance liquidity concerns against the permanent integration of private assets into public market strategies.
- Goldman Sachs17 min
How Hedge Funds are Navigating a Volatile Market
Diana Dieckman, Freddie Parker, Jake Seward, Diana Dykman
Goldman Sachs surveyed nearly 450 allocators representing $1 trillion in assets, revealing that the hedge fund industry generated record AUM of $3.6 trillion in 2020 driven entirely by performance rather than new capital flows. While the sector recovered strongly from early-year losses with average returns exceeding 20%, the outlook for 2021 anticipates $35 billion in net inflows and a strategic pivot toward discretionary macro managers and Asian exposure, particularly China. This shift coincides with a reversal in fee compression, as rising performance prompted average management and performance fees to increase for the first time since 2012.