Hedge Fund Startup Investors Nervous
Hedge Fund Startup Investors Nervous
Investors Hesitant to Work with Hedge Fund Startups
Hedge funds seem to be on the return after an impressive second quarter, but investors are still nervous and that may be a big problem for smaller hedge funds. In a still uncertain market, investors will likely turn toward proven hedge funds with the most diversified strategies.
The hedge fund industry remains shakey and needs to string together a series of quarters of stable returns to soothe investors’ nerves. There is also a flight to qualilty. Nervy types would prefer to invest with larger firms that have diversified trading strategies. In a highly-fragmented and over-populated industry, such firms will be the likely winners, especially as they can also better afford to attract money back through lower fees. US hedge fund Fortress is already considering gobbling up competitors. The big boys are about to come out and play. Smaller funds need to watch out. Source
