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Laxman Pai, Opalesque Asia: Looking ahead, as investors brace for further volatility in equity markets, Preqin expects to see more demand for actively managed strategies.
"And as competition intensifies, watch for further consolidation in a rapidly evolving industry," revealed the 2020 Preqin Global Hedge Fund Report
Two key trends characterized the global hedge fund landscape in 2019: consolidation and investor concerns over market volatility.
Between 2012 and 2018, new hedge fund launches outpaced liquidations. But, as the industry has grown, the number of fund launches has trailed liquidations.
Just 529 hedge funds and CTAs launched in 2019, fewer than half the number (1,169) that launched in 2018.
Why? The size of the market, for a start. There were just 530 hedge funds in 1990, managing a total of $39bn. Today, there are more than 16,300 active hedge funds, all competing for $3.61tn of active capital in an evolving market.
Managers face challenging conditions
As a result, fund managers are having to work harder to retain existing clients and win new investor capital.
There are also additional challenges to consider - such as increasing investor demand for favorable terms, a growing focus on ethical investment, and the higher costs of starting a fund amid increasing regulation - all while maintaining performance.
Fund managers of all sizes have grappled with changing market conditions. Prominent names such as London-based Ar...................... To view our full article Click here
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