Financial Services Ireland

Survey

Hedge fund managers seek new asset growth strategies

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The evolving dynamics of the hedge fund industry: 2015 Global Hedge Fund and Investor Survey

The ninth annual ‘Global Hedge Fund and Investor Survey’ reflects on the path that has led the industry to its present state and looks at what the future might bring. This survey was launched in Dublin on November 18th as a follow on from the NY Hedge Fund Symposium, the first in a global series of 19 symposia around the world.

2015 stands in sharp contrast to the prior decade. Even the definition of a “hedge fund” is being challenged as segments in the financial industry blur and converge.

Brand has never been more important as new money has consistently flowed to the largest, well-known managers. That said, start-up hedge funds are experiencing robust investor demand as well.

The investor base has changed dramatically. A decade ago, investors were two-thirds high net worth and one-third institutional. Today, the reverse is true.

The selling and distribution of hedge funds has changed as well, a shift that digital technology and social media will accelerate further. Finally, the importance of the client experience has never been greater, a focus which is clearly in the crosshairs of global regulators.

The regulatory landscape has dramatically shifted, with the most current challenges being driven by banking regulations which have caused prime brokers to re-evaluate their hedge fund relationships. Price increases, financing constraints, changing relationships and a prioritization of the treasury function are only some of the issues.

Key findings

  • Most managers still focused on growth, but also on talent
  • Managers must adapt to rising fees and an evolving dynamic with prime brokers
  • Technology investments becoming more essential to support business functions
  • Outsourcing key to managers’ operating model, but there is a gap with investor expectations
  • Hedge funds looking to make transformational changes

Click here to read more or download the full survey below.

Fergus McNally

Wealth and Asset Management, Sector Leader
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