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Komfie Manalo, Opalesque Asia:

Investor demands are compelling a majority of hedge fund managers to rethink their fee models and offer flexible conditions as the industry seek to rebuild investor confidence in the wake of a challenging 2016.

A survey by data provider Preqin has found that managers have pinpointed performance and fees as the key areas that will influence the industry in the year ahead. The survey conducted in November 2016 also finds that net investor outflows through the year were felt by the wider industry, and many managers found fundraising and retaining investor capital to be significant challenges.

Amy Bensted, head of Hedge Fund Products, commented, "Investor dissatisfaction shows no signs of abating in the early part of 2017, and it is clear that addressing investor pressure around performance and fees will be the key challenge for hedge fund managers in the year ahead. Managers will be looking to build on the three-year high returns of 7.30% seen in 2016 to restore confidence in the asset class as a whole, revive investor sentiment and begin reversing the trend of outflows from hedge funds. Although investors show high levels of concern about the short-term performance of the industry, hedge funds have proved their worth in the portfolio of institutional investors on a risk-adjusted basis over the long term."

With several of the high-profile investors announcing redemptions in 2016, and......................

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