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Beverly Chandler, Opalesque London: Research and data provider Preqin reports that hedge fund managers and investors disagree on the impact of
regulation on the hedge fund industry.
Of the hedge fund managers interviewed by Preqin in December 2012 for their 2013 Preqin Global Hedge Fund Report, 42% had a negative outlook concerning regulations. Their concerns included worries that the extra compliance burden would lead to greater costs and complexity within their operations. Some 49% of investors believed regulations would be positive for the hedge fund industry in 2013, compared with 23% of fund managers.
However, nearly half (49%) of investors interviewed stated that they believed the regulations coming into effect would be positive for the hedge fund industry, citing benefits
including increased transparency and oversight of hedge funds.
Preqin also reports that many investors feel that further regulations will improve the pool of managers to choose from when investing in hedge funds. Nevertheless, both investors and managers agree that performance is the top issue that needs to be addressed in the following year; 47% of investors stated that performance was a key issue and 60% of fund managers stated the same.
Other key facts from the report include: |
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