Adapt and Evolve
The New Hedge Fund Mantra
Hedge funds have more money to manage than ever as the world’s institutional investors continue to embrace them. But even though the money is flowing in, research commissioned by State Street among alternative fund managers — including almost 200 hedge fund managers in North America, Europe and Asia — revealed that fundraising ranks as their most urgent challenge. And the survey showed additional concerns for hedge fund managers, including generating performance and adapting to regulation.
Given the significant growth in institutional investment in hedge funds, there is good reason for hedge funds to be optimistic about their prospects. However, the ability to differentiate by delivering exceptional performance and increased transparency will be vital in years to come. In fact, an unexpected silver lining of the 2008 financial crisis is that the hedge fund industry is becoming an increasingly investor-friendly environment, and is well placed to prosper as a result.
The ability to differentiate by delivering exceptional performance and increased transparency will be vital.