The global financial crisis is bringing about an evolution in hedge funds that will render significant changes to the industry. Record investment losses and investor withdrawals have cut assets under management by more than one-quarter, consolidation is under way, and both investors and regulators are calling for greater transparency.
Download: Hedge Fund Study – State Street -June 2009
Two major trends that will have far-reaching impacts are emerging: a migration among the maturing hedge fund industry to third-party administration, custody and specialized services, and the most comprehensive reconsideration of financial regulations in a generation.
According to State Street’s annual hedge fund study conducted in October 2008, 84 percent of institutional investors surveyed expect more frequent disclosure of hedge fund positions, while 49 percent anticipate more frequent reporting.
Before the dust from the crisis settles, it will be important for all of the stakeholders in this market to understand the ramifications of these trends and to participate in shaping the new structure of this changing industry.
Though forever altered by current market conditions, hedge funds will retain their critical and proven role in institutional investors’ financial portfolios.
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London Mayor: Hedge Fund might leave London for Singapore, SGP Hedge Fund, 09,07,2009
London Mayor Boris Johnson attacks EU’s plans to regulate hedge funds, FT 08.07.2009
Source: State Street, June 2009
Filed under: Asia, Library, News, Risk Management, Services, Wealth Management , Clearing and Settlement, Financial Crisis, Governance, Hedge Fund, Investment, Regulation, Risk Management, Singapore, State Street
