Hedge Funds

JPMorgan report says alpha harder to capture

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The endless quest to find alpha is likely to become increasingly difficult for hedge funds in the foreseeable future, according to a new JPMorgan study.

The report, penned by JPMorgan market strategist Jan Loeys, suggests that hedge funds with established investment styles are likely to find it harder to eek out the level of strong returns seen in the past. That's thanks to difficult markets and a deluge of capital that has flooded into the industry and made markets popular with managers overly efficient from a pricing standpoint.

Loeys says the funds that will do best will be those that