The Growth of Hedge Fund Managed Accounts

A new frontier for hedge fund investing benefiting both managers and investors? On balance yes; albeit with increased concentration and cash management risks and a need to focus carefully on terms.

The number of separately managed accounts (“SMAs”) is expected to grow materially both on an absolute basis and as a proportion of total hedge fund assets under management, as investors and asset allocators continue to seek access to SMAs and the benefits that SMAs offer.

For a closer look at SMAs and the most favored nations (“MFN”) provision typically requested by SMA allocators, we invite you to download our two articles on the topic written by Craig Borthwick, Lewis Cheney and Freddie Newman from Dechert's financial services group.