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Matthias Knab, Opalesque for New Managers:

How evolving fund structures, investor requirements and cross-asset innovation are reshaping the hedge fund value proposition (UBS Asset Management, The Red Thread). Hedge funds have been declared dead, reborn, disrupted and reinvented for two decades. UBS argues that in 2025 the real question is not whether hedge funds "work", but whether investors are being paid for the complexity, fees, liquidity terms, and operational overhead. The industry is simultaneously consolidating and fragmenting: larger platforms keep getting bigger, while smaller specialists try to stay relevant by being truly differentiated. 1) The industry is bifurcating UBS describes two dominant archetypes emerging: * Mega multi-strats: large, complex platforms with many teams, centralized risk management, deep data infrastructure, and the ability to allocate capital across strategies dynamically. * High-conviction boutiques: focused single-strategy funds (macro, credit, relative value, event-driven) that aim to exploit niche inefficiencies, often capacity-constrained but nimble. The practical implication: "hedge funds" are no longer a single bucket. Allocators increasingly need to underwrite the operating model, the risk system, and the talent engine, not just the strategy label. 2) Multi-strate......................

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