The Evolution of Hedge Fund Management

Discussion in 'Wall St. News' started by dealmaker, Jan 2, 2018.

  1. dealmaker

    dealmaker



    1) 2016 saw the largest number of hedge fund closings since the credit crisis

    2) Legal, regulatory and technology costs have increased substantially which makes launching new funds more challenging

    3) Ten years ago $100M was a descent size to reach for a new fund today that number is $4-5B

    4) Having risk committee too involved reduces alpha

    5) Due to available resources it's easier to know the unintended consequences in a larger fund

    6) If you are just a bottom up fundamental investor you will get left behind

    7) Factor risk was not in hedge fund vocabulary ten years ago

    8) Cleaning data making it monetizable for PMs requires resources which smaller funds don't usually have

    9) Large/ experienced investors prefer paying 2/20 to having a no fees bare bones operation

    10) It's easier to attract talent than any time before but guaranteed minimums have gone up

    11) Unwinding of Fund of Funds model has made it more difficult to launch start up funds and finding money for smaller funds. Fund of Funds space has been partially taken up by family offices

    12) Hedge Funds industry is in a consolidation phase where big funds will get bigger

    13) Average hedge fund life span is 3 years, only one in one hundred make it to 25 years

    14) You have to continually evolve and reinvent yourself to stay relevant

    15) Today marketing, communication etc., just as important thus you need to be a good business manager where as ten years ago you could have gotten by just being a good investor

    16) San Antonio Spur's head coach Greg Poppovich's #1 criteria in recruiting is character thus you do not read Spur's players involved in DUI or other extra curricular activities
     
    Equalizer, Gambit and sle like this.
  2. sle

    sle

    I recall looking at MS prime brokerage report recently - the number of large funds in their prime universe (I doubt they take on anyone under 250) gone from about 1300 to about 500. So yeah, "consolidation".
     
  3. ajacobson

    ajacobson

  4. fan27

    fan27

    Further confirmation I am on the right track building a Quant SDK with solutions to go along with it.
     
  5. fordewind

    fordewind

    Who`s been harbouring this crap?What evolution?1 out 100 lasts ~ 25 year...
     
  6. truetype

    truetype

    Thanks for the summary. Surprised Milken wasn't able to get household names for the panel. It's a high-end conference.
     
    dealmaker likes this.
  7. dealmaker

    dealmaker

  8. dealmaker

    dealmaker

  9. fan27

    fan27

  10. sle

    sle

    It's the leveraged risk-arg fund, from what I understand. What I don't get is how the fuck does one lose money on merger arb in THIS market?
     
    #10     Jan 10, 2018