Large funds with assets under management are launching new products such as liquid alternatives, finding high demand, a study from EY Consulting finds. However, due to fee pressure profit margins at the large funds are coming under pressure. Smaller hedge funds focus on increasing growth Unlike the larger programs, mid-sized and smaller hedge funds, on average, tend to focus on increasing growth through their existing offerings, while the growth strategy of Fund of Funds managers is by creating registered liquid alternative products, the study concluded. While observing dramatic growth, EY cautioned about a herd mentality and entering into new products…
Under Fee Pressure, Hedge Funds Cut Headcount But Increase Regulatory, Cyber Security Spending
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.