The reason for the increased interest in alternatives, McKinsey says, isn’t that the alternatives’ managers are slashing the price of their services. It is, rather, a discontent with the return to be gained from traditional investment. “Even with downward pressure likely over the next few years, revenue yields for institutional alternative products should remain well above the 35 bps average earned on today’s traditional institutional products.”

Mark Casella, leader of the U.S. alternatives group at PwC, tells us why he thinks funds of funds still have a role to play in the future of the hedge fund industry, although "we have seen more and more institutions invest directly in hedge funds rather than through funds of funds." This is the first part of a two-part transcript of a broader discussion.

From Lynne Feldman, Director of Marketing at the CAIA Association: Associate Director of Curriculum Keith Black, PhD, CFA, CAIA, delivers an introduction to commodities and alternative investing. Keith delves into the various types of commodities and their benefits in a brief and informative presentation.

Given reasonable assumptions, one might expect that those investing in commingled products offering exposure to agriculture would take part in both good investment returns and diversification benefits. Alas, though, GFIA found no such thing, and considers the possibility that agriculture as an asset class has decoupled from fundamentals.

The survey also asked that the asset managers state where their total assets are invested, using four geographical categories: Europe; Central/North America; Asia Pacific; Other. Commodity funds were easily the most heavily invested in C/NA, to the extent of 94 percent of their portfolios. Private equity funds are 61 percent invested in C/NA, and PE FoFs also have the majority of their portfolios there, at 54 percent.

There has been a perhaps-unexpected consequence of the disappearance of the old-fashioned floor traders. Floor trading used to serve as a training regimen, "from which many of the industry's leading disacretionary traders originated." Without the floors, the talent pool has dried up.

FACTA follows from the distinct nature of the obligations the U.S. imposes on its citizens living and/or earning abroad. It represents, as the white paper says, the Internal Revenue Service “extending its long reach” in order that non-US companies will have to help it collect taxes. Any foreign financial institution worldwide that does not agree to reporting, disclosure, and withholding of its US clients’ assets will be subject to a 30 percent withholding tax itself on its US sourced income.

Charles Skorina looks at the state of institutional assets.

A veteran of hedge funds and private equity, Jeff Joseph offers some comments to the U.S. Securities and Exchange Commission on the JOBS Act and what this legislation has the potential to mean to the global alternative investment community.

Shane Brett, managing director at Global Perspectives, UK, provides a series of alternative investment "beach reads."