Investors hold strongly negative views toward the rating agencies and the Securities and Exchange Commission and expect the current market malaise to continue throughout the remainder of this year and into next, according to the latest survey from the Greenwich Roundtable and Quinnipiac University.
According to the survey, investor trust and confidence toward both the regulatory agencies and alternative investments has been shaken. Confidence is low and a minimum of a six- to 12-month period of stability will be required to bring investors back into the markets.
Greenwich Roundtable members collectively represent more than $6.4 trillion in assets under management
“Leverage, liquidity, and lack of confidence are still keeping the sophisticated investor on the sidelines,” said Steve McMenamin, roundtable executive director. “We have never seen so many rational, cool-headed limited partners refrain from making future commitments to alternatives.”
“The credit crisis underscores the need for a return to basic investing fundamentals,” said Matthew O’Connor, finance professor at Quinnipiac. “There is the need to understand and remember the importance that the role of real liquidity, real leverage, diversification, and due diligence plays in portfolio construction.”
The survey is designed to capture the trust and confidence that private and institutional investors have in the alternative investment community in light of the recent credit crisis and market turmoil.
