Hedge funds are facing multiple headwinds to their business models, and the industry needs to change significantly to remain relevant according to a new report published by the Boston Consulting Group.
Aside from the obvious threat of the falling cost of beta, the standard hedge fund model is coming under pressure from other factors that will ultimately require funds to be more integrated with their clients, more agile in adapting to technological changes and more attractive as employers. The BCG report comments that these pressures will continue to affect the industry where market conditions improve, stay the same or worse than going forward.
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