Page 3 of 5
3. Headwinds for Hedgies
(Image: Shutterstock)
The market has not been kind to hedge funds. After just recently found legs from improved performance and having seen flows gradually improve in the region, the whole hedge fund and liquid alternative universe received a blanket «complex» label.
With this label in place, banks will effectively have to perform client suitability checks for the entire product group. This is expected to significantly reduce the attractiveness of banks pursuing strategies involving tailoring for smaller accounts or single manager investing in favor of more scalable, one-size-fits-all solutions such as diversified hedge fund baskets.
