The events of 2008 will change the hedge fund industry for
good. While most investors plan to keep investing, they are
demanding major changes in the way their money is run
Poor performance, crashing markets and the Madoff scandal
conspired to cause record redemptions last year, but a spate of
recent surveys shows that most investors are still committed to
investing in hedge funds - and are likely to invest more,
rather than less, in the future.
But what is also clear from the surveys is that, while these
investors want to keep putting money into hedge funds, they
want to do so on their terms - which means more transparency,
more control over their assets and possibly different fee
structures. And managers can expect longer and more thorough
due diligence processes as well.
In its annual investor survey released earlier this month,
Deutsche Bank found that of the 1,000 investors it...