The decade-long growth of cheap index-tracking funds is giving hedge funds an unexpected influence in setting market prices.
As China opens its version of the hedge fund industry to overseas firms for the first time, pioneers are wading into a market full of both promise and peril.
Funds using automated investing processes are the fastest growing segment of the hedge fund universe.
China-focused hedge funds bounced back from their worst performance in five years and trounced global counterparts. After an annual loss last year, Greater China hedge funds added more than 13 percent on average in the first half of 2017 to rank among the top-performing strategies in the world.
Investor interest in hedge funds is back on the upswing. Hedge funds saw the biggest jump in demand among asset classes examined in a Credit Suisse Group AG report.
As part of the International Accounting Standards Board's (IASB) response to the financial crisis, IFRS 9, which replaces IAS 39, aims to align hedge accounting more closely with risk management. As a result, a broader range of economic hedging strategies are likely to qualify for hedge accounting.
As many of the world's biggest investors, including public pension funds, foundations, endowments, family offices, and sovereign wealth funds increase their focus on responsible investing, they are starting to ask whether hedge funds they invest in are incorporating sustainable strategies.
The hedge fund industry is starting to recover from a bruising stretch. More traders are launching hedge funds. But one area has been notably left out of the resurgence: credit hedge funds, which have continued to lose investor money.
U.S. prosecutors are investigating one of Wall Street’s darkest markets, focusing on hedge funds suspected of inflating the value of debt securities in their portfolios to juice the fees they collect.
Fee pressure, a shift to passive products and hedge-fund outflows remain asset manager challenges in 2017.