Trends Watch: September 1, 2016

With this post, EisnerAmper‘s Alternative Investments Intelligence blog features its new Trends Watch, a weekly entry featuring founders at alternative investment firms . If you’re interested in being featured, please contact  Elana Margulies Snyderman. 

This entry features the thoughts of Michelle Kelner, Founding Partner, Sandglass Capital Management   

What is your outlook on the alternative investment industry? 

One trend I see is the continued contraction and bifurcation of the industry, with many larger funds having to cut fees in order to retain clients. I also see allocators increasingly seeking ways to gain access to select niche strategies and emerging managers either directly or through investment conduits.  

What are the next steps for the EU post-Brexit?

First of all it’s important to keep in mind that Brexit may not actually happen until 2018 or even 2019, so it is hard to say with any confidence what the next steps are for the EU following a Brexit event that MIGHT happen in 2-3 years’ time. The EU continues to be a politically driven union that requires more integration to achieve economic equilibrium.  It is my personal opinion (and not necessarily reflective of my firm’s view) that we will reach a point where further economic integration will become politically feasible across member states.  If that does not occur, then it is possible that the economic stresses, particularly in the peripheral economies (but also in some of the larger member states, specifically Italy) will undermine the political will of European countries to continue to the EU project in its current form.  That outcome could lead to a restructuring of the EU member states, and a smaller core EUR zone.   

What keeps you up at night? 

My dog!  (Really!) 

I think that global expectations are firmly anchored around low interest rates for a while longer, which seems a significant risk, particularly as the calls increase for fiscal policy responses to slow growth across developed economies. 

*These views are solely that of Kelner, not Sandglass.