Back to the future
As hedge funds eye a return to the retail market, competitive pressure and institutional gatekeepers will continue to steer the industry toward innovation and operational excellence.
Hedge funds: back to the future
During the second half of 2021, and in collaboration with ANZU Research, Preqin, and Global Fund Media, SEI surveyed 160 participants—79 hedge fund managers (General Partners, or GPs) and 81 investors (Limited Partners, or LPs)—to gather and compare their perspectives, get a glimpse of the future, and pinpoint threats and opportunities within the hedge fund industry.
Some highlights of our survey:
- Investors are much more focused than managers on diversification and volatility reduction.
- Managers underestimate investor concerns over exit strategies, portfolio transparency, liquidity risk, and leverage.
- A growing emphasis on operational excellence is the single biggest shift over the past decade.
- Managers hoping for less fee pressure may be disappointed. GPs point to changes made, but investors are looking for fees commensurate with performance.