Survey Shows Alternative Investment Industry Thinks US is Diminishing Global Influence

Feb 9 2018 | 7:39pm ET

The New York Alternative Investment Roundtable recently conducted a survey on the topic of how the United States stacks up in foreign affairs and found that many in the alternative investment industry think the United States is diminishing its global influence, according to a recent release by the roundtable.

New York Alternative Investment Roundtable members had the opportunity to weigh in with their predictions regarding U.S. foreign relations at the roundtable’s January event, as well as through an online electronic poll.

Following are some of the key findings of the survey:

  •          When asked whether or not the U.S. will remain a global economic superpower, 90% of respondents believe it will, while 10% do not.
  •          78% of respondents believe that the U.S. is diminishing its global influence, while 22% believe it is stepping up its influence. Of those who believe the U.S. is increasing its global influence, 60% think it is due to the Trump administration, while 40% think it is because of other reasons.
  •          59% of respondents believe that the U.S. cannot maintain its position as a world leader if it pulls back its involvement in foreign affairs and efforts to maintain global order, while 41% believe that it can.

Of the respondents to this survey, 36% were fund managers; 15% were allocators; 12% were risk management or trading; 26% were service providers; and 11% were other industry participants.

Former Senator Richard Lugar (R-Ind.) was the featured speaker at the roundtable’s January event, where his presentation “The Idea of the Abdication of American Influence in the World & the Consequences for U.S. Security and Prosperity” highlighted his thoughts regarding the consequences of the Trump administration’s foreign policy and the long-term impact he believes it will have on the United States and other countries around the world.

“There have been a number of incidences made by the President in his first year that are significant,” said Lugar at the event. “U.S. leadership is diminished, and the question is, ‘Does that make a difference?’… In the past, the United States did take an interest in disputes around the world and was considered the leader because we were the only country that had the resources, both military and economic, to do so. But the president is indicating that our resources are going to be husbanded much more here in the U.S.,” he said.

The New York Alternative Investment Roundtable does not take any political positions, welcomes diversity of perspective at its events and does not endorse any political views that are expressed by speakers or guests, according to the organization.

Other items learned from the survey include the following.

  •          Asked whether or not America will remain a full member of NAFTA or have its membership limited within the next year, 58% believe it will, while 42% believe that it will not.
  •          Asked what poses the biggest threat to America’s position as a global economic superpower, 44% believe it is a loss of confidence in U.S. leadership; 23% think it is the failure to build strong coalitions with other countries; 19% think it is protectionist trade policies; and 14% think it is the rapid evolution of technology.
  •          When asked what would result if America were to lose its position as a superpower, 33% of respondents said that the result would be increased instability within other regions of the world, such as the Middle East; 26% believe it would be the loss of American affluence and a widespread increase in poverty within the United States; 17% said it would be the end of the dollar as the world’s reserve currency; 10% think it would be a collapse of the global economy, replaced by the creation of multiple growth centers; 8% think it would be another major global economic crisis; and 6% say it would be a decrease in terrorism aimed at the United States.

The New York Alternative Investment Roundtable is a non-profit organization focused on promoting ethics and best practices within the alternative investment industry. The membership consists of investors, hedge fund managers, private equity fund managers, family offices and other industry professionals who regularly meet to discuss current issues within the industry and connect with peers.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...