Despite a broader industry trend that saw hedge fund redemptions accelerate slightly in May to -$27.53 billion (-0.54% of industry assets), some hedge fund subsectors did manage to add to assets over the month, according to the latest Barclay Fund
As hedge funds’ compliance teams get to grips with a byzantine array of plans from market authorities on both sides of the Atlantic, wider economic and political developments are continuing to recalibrate the investment and regulatory environment.
Regulatory change in Europe is gathering pace following the pandemic, and as ESMA’s plans for enhancing AIFMD and MiFID remain on managers’ radars, the post-Brexit FCA implementation of the new IFPR may bring added headaches.
With private fund advisor rules firmly in the SEC’s compliance crosshairs, a majority of US managers say they are concerned about the regulator’s far-reaching proposals, which could bring significant operational and compliance burdens and substantially impact certain hedge fund strategies.
A survey by Hedgeweek in June shows that 50% of larger hedge funds (>$1bn) are looking to expand their internal legal and compliance teams, with 44% of smaller hedge funds (<250m) planning to increase their outsourcing of compliance functions.
Hedge funds are investing an increasing amount of time, effort and money into dealing with legislation requirements, with new Hedgeweek research charting the extent that larger managers are leaning into recruitment and smaller managers into outsourcing.
Hedge funds are strongly optimistic that they will see increased investor inflows over the next couple of years, according to new research from quant technology provider SigTech.
Emerging managers are in a buoyant mood looking ahead to the rest of 2022 – despite renewed market volatility and economic uncertainty underpinned by the war in Ukraine and rising inflation.
The alternative investment industry has witnessed the resurgence of global macro strategies and CTAs off the back of rising inflation – in the first quarter alone, CTAs generated performance-based gains of $27.8 billion, attracting $3.3 billion in net new capital,
Emerging managers have outperformed all hedge funds YTD, with data showing they outperformed hedge funds by 4.8% on average over the past three years, according to Hedgeweek’s latest Insight Report.
