Increasing assets under management is the first priority for more than half of the 109 hedge fund managers interviewed for a hedge fund industry report prepared for Ernst & Young Global by Greenwich Associates.
The report, issued Tuesday, showed 57% of hedge fund companies identified asset growth as their first strategic priority, a decline from about 75% in EY’s previous report, published in 2013. About 20% of hedge fund respondents said asset gathering was their second priority and 10% said it was their third goal.
By size, asset growth was the first priority of 70% of hedge fund firms managing between $2 billion and $10 billion; firms managing over $10 billion, 47%; and firms managing less than $2 billion, 40%.
Regarding talent management, 24% of all respondents said it was their top priority; second priority, 32%; and third priority, 32%.
Operational efficiency was further down in hedge fund managers’ strategic plans, with 17% naming it their first priority; second priority, 39%; and third priority, 28%.
Succession planning, a sale of the firm or strategic alliances were not very prominent in the future plans of survey respondents with just 3% identifying it as the most important goal; second priority, 6%; and third priority, 20%.
Greenwich Associates conducted the survey of hedge funds managers in North America, Europe and Asia between June and September.