Next up in our “Meet the Team” series is Frances Barney, managing director and Head of Global Risk Solutions for Asset Servicing. She discussed BNY Mellon’s recent white paper on hedge fund allocations, as well as how we can use big data to provide new types of analysis. An excerpt of our conversation is below.
What are some key insights from your recent “Swimming Against the Tide” whitepaper?
There were headlines a lot last year that would lead everybody to think that everybody’s getting out of hedge funds. And the data really presents a different story. With the Asset Strategy View data we have the ability to see that, yes, in aggregate, the allocations to hedge funds are declining across the board, but once you dig into the data a little bit, you can see that public funds in particular over a certain period of time were actually increasing their allocations to hedge funds. We also see that there are differences, in some cases, by the size of the institutional investors so larger plans may be going in one direction while smaller plans are going a different direction. So the ability to dig into the data really gives us the ability to help our clients have more insight into how they can market their strategies and how they can explain their performance or their allocation decisions for all of their stakeholders.