An interesting article from the FT relating to the long-term scalability of investing into Infrastructure, with demand at an all time high. This has been contrasted to the shrinking hedge fund industry, which has experienced mass redemption's, poor performance; with the once loyal hedge fund investor shifting their allocation and allegiance to the attractive long-term double digit returns that Infrastructure Investment has delivered to date.
This article highlights the implications of investment saturation and questions whether the Infrastructure Investment market is growing too quickly for its own good......
Hedge fund managers are demoralised and unpopular, with money draining from the industry every month. Infrastructure fund managers see skies as blue as those on the covers of their investor presentation books. Hedge fund managers and their incentive compensation are the piñatas for even centre-right tax proposals. The left would like to leave them and their money in shallow graves. The latter part of 2018 was particularly depressing for hedgies. According to Eurekahedge, the data company, in December hedge funds registered a performance-based decrease of $11.3bn, and net asset outflows of $12.2bn, leaving total assets under management of $2.34tn. Infrastructure funds, on the other hand, cannot shovel in the money fast enough. According to IJGlobal’s estimate, infrastructure funds raised a record$102.3bn last year, beating the previous high of $88.2bn in 2015.