Fuse Blog

Evaluation Criteria for Alternative Asset Managers

  • Analyzing alternative managers and mandates can be a challenging endeavor for financial advisors. Based on our recent Alternative Products: The Advisor View, an investment’s strategy and track record are the top two criteria advisors weigh in their decision-making process.
  • Evaluation criteria ratings are highly consistent among advisor demographics. Only the following three instances yielded a rating differential that topped 0.2:
    • The oldest group of advisors (60+) are most inclined to assess a strategy’s track record.
    • Advisors with $250 to $500 million in AUM are more apt to consider both liquidity and the size/scale of a manager.
  • The emphasis on strategy and track record among advisors underscores how important it is for managers of alternatives to start with the right vehicle, asset class, and other product traits.

Importance in Criteria when Evaluating Alternative Managers and Investments
Note: Scale of 1 to 5 with 1= Not at all important and 5 = Most important

Blog Exhibit 12.19.23 LT

Source: FUSE Research Network