Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Not your father's hedge fund industry

Friday, March 23, 2012

Authored by Matt Nelson, Executive Director, Strategy at Omgeo LLC, a financial operations expert, this article looks at the consequences of pending regulations on the hedge fund industry.

Much of discussion on the regulatory changes facing the financial industry in 2012 and beyond has focused on high profile topics such as systemic risk, bank capital and OTC derivatives. Not only are these topics interesting to the masses, they’re also where regulators and the public have pointed their fingers when handing out blame for the crisis.

What many may not realize is that these global regulations, including Dodd-Frank in the US and EMIR and the AIFMD in Europe, will also have a profound and wide-reaching impact on hedge funds and the unintended consequences on this industry may be severe.

As an example, I was recently speaking to someone who works at a sizeable hedge fund who informed me the firm has recently decided to return their investors’ money. Among their reasons are the daily challenges of dealing with global regulations, demanding clients and difficult markets. I suspect that this firm is not alone and that many firms are following or considering a similar path.

Although the US markets are performing well, several Asian and European markets are struggling and globally, investor confidence is shaky at best. But as hedge funds are opportunistic and depending on their investment s......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November