The success of the hedge fund industry has been phenomenal
over the past 30 years, but what about the next-generation
managers? As the industry institutionalises, the institutional
buyers are asking for many of the business processes they rely
on in the long-only world to be adapted to the hedge fund
world. A long-term pension fund investor is unlikely to invest
in a manager that has no succession plan; key-man cover; and
organisational basics in place.
Due to the time it takes to find and source a manager,
investors like to stay with their investments for as long as
the performance holds up....