Agecroft predicts smaller managers' continued outperformance, more use of founder's share fee structure

Among their 10 predictions of the top hedge fund industry trends for 2015, Agecroft Partners believe small managers will continue to outperform and that the founder's share fee structure will become mainstream for small hedge fund managers. They also see more closures, more assets, more demand for de-correlated strategies, a more competitive space for 40Act funds, less marketing activity in Europe due to the AIFMD, more outsourced CIOs, and more use of social media.(Full press release) Stonehaven predicts increasing number of small managers will close down

Stonehaven, LLC published their forecast fortop alternative investment trends for 2015. Among them, they expect an increasing number of small managers will shut down while an increasing number of larger managers will seek GP monetization events.

"With approximately 15,000 global hedge funds in business today, the vast majority likely aren't adding enough value for their investors to exist in the first place," the report says. "Recent sub-par industrywide returns also reflect that the "average" alternatives manager is underperforming expectations. Most are also sub-scale to run an institutional infrastructure. Highly fragmented industries eventually consolidate as they mature, and the alternative investment space is no different.On the opposite end of the spectrum, we expect to see increasing monetization events for more mature managers including selling stakes to private equity firms and IPOs."

They also expect that while emerging and mid-sized managers will likely provide the most compelling returns, the largest managers are most likely to......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.