Thursday, 23 February 2017

Turning the tide ... 2017 global hedge fund industry outlook and trends

Right. Andrea at Barclays has sent me a PR email. It's confusing though. 'Why is it confusing, boss?' Wait and see, Voice.

Yes, it's all very confusing, dear reader(s). There's a video, which I don't fancy watching, really. 'Oh.' Yeah. And there's this PDF thing ... 'Okay.' I've tried to copy and paste a bit of it, but it's come out all funny. I can't use it. 'Try, boss.' The readers won't be able to make any sense out of it. 'Just try, man.' All right. I'll try it, FFS!

In this study, the Capital Solutions Strategic Consulting team considers the status of the hedge fund industry, particularly with respect to recent performance in historical context, and the implications for the industry going forward. This paper projects industry flows and investor allocation preferences across HF sub-strategies and a variety of products and offerings. The report is based on input from ~350 investors with almost $1 trillion of HF allocations.

'Well, that's okay.' That's not it, Voice. That's from the email. Just hang on a minute. Here it is -

Twelve months ago uh ... as we sat down to write our 2016 Outlook publication the mood was dour the hedge fund HF!!! industry Industry was struggling in the midst of what would become one of the worst drawdowns since the turn of the century behind only the 2008 "Global Financial Crisis" - !!! while a number of prominent institutional investors had announced their plans to exit HFs entirely and the nancial press was awash awash I tell you! with articles criticizing HF performance and fees against this backdrop we anticipated a bleak year ahead and predicted that the industry would see net outowls of $30bn in fact we ultimately underestimated the severity of the impact as 2016 saw $70bn in net redemptionsongs from HFs marking the fth consecutive quarter of outowls even as we focused on the struggle for HF managers and investors the asset management industry as a whole was and still is progressing through its evolutionary process as owls are redistributed out of active and into passive aggressive products and players across the ZX spectrum must reconsider their business model and value proposition all the while regulation and technology are forcing evolution as well yet in spite of all that the HF industry has endured over the last 18 months we nd ourselves writing this year's Outlook with a renewed optimism to start we undertook a more nuanced and objectives-based approach to contextualizing and evaluating underlying HF returns in the post-crisis period and we found that this most fulsome praise of performance revealed a less dramatic deterioration than popular perception would suggest further while HFs have underperformed recently relative to the remarkable and unprecedented run of the equity and bond markets our research conrms that they nonetheless have an important role to play in complementing and balancing investors' portfolios most notably we also fou ...

You see? 'You've done something to that.' I haven't! Look at those little box things. That wasn't me. The whole thing is a disaster, but I'm not to blame. It's like something that Lucky would think. / Ah, let's move on!


Move on to? Nothing in particular. I'll be doing a conceptual later, the last post of the week.

I feel like watching Easy Rider tonight. / I might get a motorbike and take off to Cornwall. Never come back ...