Investors and managers disagree over hedge

Added 31st January 2013

Almost half of hedge fund investors believe that increased regulation and greater scrutiny of the alternative investment sector will bring about positive change in the industry, compared with only 23% of hedge fund managers.

Investors and managers disagree over hedge

The findings come from a survey conducted in December 2012 for the 2013 Preqin Global Hedge Fund Report and reveal a sharp contrast between the expectations some investors and fund managers have about the growing tide of regulation being introduced.

Preqin said the 49% of investors who believed regulation would be a positive for the industry cited benefits including increased transparency and oversight of hedge funds. The company added that investors also feel further regulations will improve the pool of managers to choose from when investing in hedge funds.

There was one point however on which both parties agreed – improving performance should be a key concern for the hedge fund industry this year.

“Operating in a new regulated environment poses many challenges for hedge fund managers, and many of those interviewed by Preqin have demonstrated concerns about the impact it will have on their performance, a key challenge they face in 2013,” said Amy Bensted, head of hedge fund products at Preqin.

“Hedge fund managers have had to comply with the increased regulatory and registration requirements of the Dodd-Frank Act. The AIFMD, which will involve additional registration and disclosure requirements, will affect managers within the European Union, as well as those which seek capital from investors within European Union member states.”
 

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

International Adviser is aimed at global intermediaries who advise their HNW clients on International fund, life and banking products and tax efficient solutions to their cross-border needs

To subscribe to International Adviser's news bulletins and apply for a magazine subscription click below

Editor's Pick

EFG Hermes launches its first Ucits funds
EFG Hermes launches its...

Egypt and Middle East-based investment bank EFG Hermes...

Most HNWs to invest more in 2016, says deVere
Most HNWs to invest more...

Three-quarters of high-net-worth (HNW) individuals...

BoE unanimously holds rates, cuts growth outlook
BoE unanimously holds...

In an unexpected move, the Bank of England’s (BoE)...

OTHER STORIES FROM LAST WORD...