Sweeping changes in the global environment and heightened market uncertainty are challenging hedge fund investors including seasoned and sophisticated institutions—as never before.
Still, institutional investors continue to deepen their commitment and increase their allocations. At the same time, institutions keep ratcheting up the challenges and requirements they pose to hedge fund managers. In this new landscape, investors are pushing the industry to de-risk, to improve operations and governance, to enhance liquidity and to provide more windows into investment processes and decision-making.
The year 2011 was an uncommonly rough one for hedge funds, and yet they have continued to grow with institutional assets as their mainstay. In this first report and in Part II, our survey highlights what hedge funds will need to do in order to maintain investor confidence and stay on a growth track going forward.
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