Hedge Funds Expect Difficult Year Ahead

Mar 9 2009 | 10:42am ET

While reporting an almost universal desire to raise new capital, the vast majority of senior hedge fund managers are anticipating that 2009 will be a difficult year for the industry.

According to a new Rothstein Kass report, 83.7% of survey participants expect that competition for hedge fund investors will dramatically increase, with new investors expected to represent the primary source of new capital to the sector. Amid rising operating costs and an enhanced regulatory focus on the industry, 79% of senior professionals also agreed that hedge funds will revert to being a niche investment class.

The majority of survey respondents anticipate that competition for investors will dramatically increase and that hedge funds will be much more costly to operate. Sixty-two percent also predict that M&A and restructuring activity among hedge funds will boom and 98.7% of hedge fund managers expect that there will be increased regulation of hedge funds. And 61.1% of respondents reported that their personal net worth had decreased by 30% or more.
 
“While managers recognize that enhanced transparency has the potential to increase operating costs, many are broadly supportive of increased regulation,” said Howard Altman, co-managing principal at Rothstein Kass. “They recognize that legislation may help to restore investor confidence, leading to renewed asset flows over time.”
 
The survey was based on telephone interviews with 239 hedge fund senior partners at U.S.-based hedge fund organizations with at least $100 million under management and no less than five years in operation.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.