“Crossover” Hedge Funds Remain Popular With Investors Despite Private Market Losses

Over the past decade, there has been a surge in hedge funds acquiring private assets. Funds that manage private and public equities, also known as “crossover” funds, have become increasingly popular with investors and managers as firms seek a way to outperform in the increasingly competitive hedge fund arena. Surveys suggest there are now around 10,000 hedge funds, all of which are trying to beat the market by getting one up on their peers. As the market has become more competitive and, as a result, more efficient, hedge funds are finding it harder to identify and exploit misvaluations and arbitrage…