Changing Investor Preferences Are Pressuring Hedge Funds To Adapt In Order To Grow

Hedge funds' shrinking returns and escalating investor demands. Downward pressure on fees and unrelenting requirements to have robust operating models. This year, competing forces came together to culminate in the perfect storm. In a year marked by lackluster performance and rising investor expectations, one inevitably asks: Will the challenges of today pave the way to a more successful tomorrow? That all depends on how you respond. As we look back on the year that has passed and look ahead to 2017, a few points come into sharp focus.

Pressures on Hedge Funds

The hedge fund industry continues to be under pressure from several compounding forces. Performance has been pedestrian, with absolute returns challenged by external factors such as unprecedented central bank involvement...