I know this can vary pretty significantly allocator to allocator, but I'm just curious for anyone that's gone through fund raising to hear your opinions. I know when I worked for a CTA we were targeting 8% and wanted to hear if that was the norm, or if other institutions had higher vol targets.
Tangential question there: do types of specific asset allocators have higher vol targets than others? I.e. do family offices generally prefer 15% while endowments look for 10?
Thanks for the help!
8-10 sounds pretty normal for institutional. On family offices, from what I've seen (admittedly not a huge sample size) it's not that they prefer higher vol targets but more that they don't tend to have as strict a range in mind and just want to see a tidy Sharpe.
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