“For the hedge fund industry to be successful and grow assets outside of performance gains, it must offer investors something they cannot access elsewhere at a cheaper cost,” the report read.
“Additionally, market conditions must be such that those offerings are attractive, regardless of prior or recent performance. This is exactly what we’re seeing after one quarter of 2017 is in the books.”
“The large interest in macro funds, managed futures, and quantitative equity (both directional and market neutral) are indications that investors are indeed showing preference for hedge fund products which either offer alternative approaches to public equity markets, offer thematic approaches to global markets, or offer systematic approaches to these same global public and derivative markets.
“Whether the industry can ultimately thrive in a world where multi-strategy and event driven funds appear to not be in high demand has not been proven in the past, but one thing about 2017 which appears clear is that it is shaping up to be unlike other years in recent memory.”
