Study confirms hedge funds remain “a riddle, wrapped in a mystery, inside an enigma”
Oct 22nd, 2007 | Filed under: Hedge Fund Industry TrendsAs the clouds of war gathered over Europe in 1939, Winston Churchill famously said of Russia’s foreign policy, “It is a riddle, wrapped in a mystery, inside an enigma…”.
And ten bucks says that if Churchill was alive today, he would say the same thing about the new Ernst & Young survey of hedge funds released last week – assuming he read such reports…and maybe had a blog or something.
The key findings have been well covered. The top-line issues: the maturity of industry operations, the hunt for human capital, fee-pressure, new regulatory burdens, yada, yada, yada. But a closer read of the report (available in full here) reveals several paradoxes and inconsistencies among the answers provided by hedge fund managers.
For example, the following chart from the report shows that hedge fund executives care least about “attracting new investors” and “developing new products”. This, while asset gathering becomes more competitive than ever and while one of the most common ways cited for single managers to grow is to create a multi-strategy / multi-product platform.
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