Global Hedge Funds Resigned To Regulatory Intrusions

EY’s seventh annual survey of the global hedge fund market,” Exploring pathways to growth”, reveals:

• The industry continues to mature, and new practices have now almost entirely
superseded the old hedge fund model.

• Firms are focusing on growth ‘with a resigned acceptance of regulatory and
reporting intrusions.’

Polarity exists, with the largest firms succeeding thanks to size and scale and the smallest thriving by virtue of simplicity. The middle ground, on the other hand, looks quite challenging.

Nearly three out of four investors say they will not change hedge fund allocations in the next three years. 17% intend to increase allocations, while 11% intends to decrease them.

The 2013 global survey compares opinions from 100 hedge fund managers who collectively manage US$850 billion, and 65 institutional investors with US$190 billion allocated to hedge funds.