Sat, Oct 10, 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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with