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Matthias Knab, Opalesque: Agecroft Partners release 11th annual predictions of top trends in the hedge fund industry
Each year, Agecroft Partners predicts the top hedge fund industry trends through their contact with more than 2,000 institutional investors and hundreds of hedge fund organizations. The hedge fund industry is dynamic and both managers and investors can benefit from anticipating, and preparing for, the changes likely to occur. Firms that can effectively evolve with the industry improve their chances of success while stagnant firms do so at their own peril. Below are Agecroft's predictions for the biggest trends in the hedge fund industry for 2020.
Hedge fund industry assets to reach new all-time high in 2020. Despite the plethora of negative articles about the hedge fund industry, hedge fund assets have reached an all-time high in 10 of the last 11 years. There is clearly a disconnect between the mainstream media's coverage of the industry and the reasons driving investors to continue to allocate to hedge funds. Across the hedge fund investor landscape, we see an improvement in sentiment towards the industry. As net redemptions from hedge funds decline, we forecast industry assets to grow by 3.0% over the next 12 months stemming primarily from hedge fund performance. Although we expect an overall increase in assets, it will not be enough to offset declining fees, causing overall revenue to decline.
Reduction of expected returns for a diver...................... To view our full article Click here
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