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Hedge Funds: Down But Not Out

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Stockholm (HedgeNordic) – A recent report from the Boston Consulting Group – Hedge Funds: Down But Not Out is suggesting three scenarios for the hedge fund industry through to 2020.

In what the report suggests are the options of 1) momentum, 2) slowdown and 3) disruption, prognosis veers between an investment performance returning to pre-2014 levels over the next years with new opportunities (albeit still with the need to reform), to a warning of performance remaining subdued following trends in recent years and AUM sinking as much as 20-30%.

“In the most dire scenario, disruption, the structure of the market would be wholly transformed and hedge funds would suffer significant reductions in AuM, margins, and employee compensation,” the report says.

In this scenario, very large players and niche players would win out, “and a large portion of the middle of the market [would be]wiped out.”

Picture: (c) Becky-Stares—shutterstock.com

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Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

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