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Alternative Market Briefing

Fund managers optimistic hedge fund industry to maintain growth

Friday, April 06, 2018

Komfie Manalo, Opalesque Asia:

A majority of hedge fund managers, or 64% of those who participated in Preqin's year-end survey, believe that industry assets will continue to grow over 2018. In fact, two out of three managers (67%) saw their AUM grow in 2017.

According to Preqin, last year saw a return of net inflows to the hedge fund industry, alongside improved performance which helped push total assets under management to a new high of $3.6tn.

Amy Bensted, head of Hedge Fund Products at Preqin commented, "Following a strong 2017 in which the hedge funds recorded net positive investor flows, experienced double-digit performance and saw a growth in AUM, the fund managers surveyed by Preqin are feeling more positive about the hedge fund industry. Hedge fund managers are confident that this growth in AUM will continue over 2018; 64% of respondents expect industry AUM to grow over the course of the year."

Fundraising is more challenging

The survey also found that 31% of managers reported that the fundraising environment had become more challenging in the past 12 months, a significant drop from 47% that said the same in November 2016. At the same time, greater proportions of managers reported that their hedge funds had met or exceeded their performance goals in 2017 compared to the year before.

When looking at the causes of improved performance, the greatest proportion of fund managers cited the Trum......................

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