The Manager Survey

Phoenix American recently surveyed alternative investment fund managers on the effect political polarization generally has on the alternative investment industry. Here is how political polarization has on the alternative investment industry during the week of May 29 in the eyes of 676 alternative fund managers.

In light of the recent debt ceiling debate, what effect do you think current US political polarization generally has on the business of alternative investments?

As unsettling as the debt ceiling debate might have been, managers largely do not see political polarization as a drag on alternative investments. The greatest number of respondents, 23%, went so far as to say that it had a very positive effect. Debates over changes to the debt ceiling only occur when there is a divided government. Many managers favor an opposition majority in one or more of the houses of congress as a divided and fractious government is unlikely to agree on disruptive changes to tax, fiscal or regulatory policy. Also, divided government often corresponds with economic turbulence that favors the stability of alternative investments.



The Manager Survey of private equity and venture capital fund sponsors is conducted weekly on an individual survey question basis. The sample of fund managers varies by question. No margin of error (MOE) is calculated. It is important to remember that while respondents to each question were a random sample, lower participation rates carry with them higher margins of error. Data was collected using email and an online panel.