09.23.2011

Hedge Funds Will Grow In Years To Come While Focusing On Regulatory Compliance And New Reporting Requirements

09.23.2011

A New Report From Aite Group
Fireside With Fund Managers: Priorities for 2012

Boston, September 20, 2011 – A new report from Aite Group analyzes areas impacting the global hedge fund market, from regulation to execution of operations, and discusses hedge fund product offerings and client concentration. Based on a Q3 2011 Aite Group survey of 21 fund managers, the report also makes recommendations for fund managers and vendors that serve the hedge fund community.

Despite recent economic conditions and a sharp dip in assets under management (AUM) in 2008, the hedge fund market has grown in recent years and fund managers have a positive outlook for growth in years to come. In fact, Aite Group sees the potential for a 13% to 14% compound annual growth rate over the next three years, as the industry continues to recover and adjusts to the affects of the Dodd-Frank Act and the generally more cautious regulatory and risk management environment. Even so, the process of adhering to new reporting requirements and regulations poses the greatest challenges to the industry.
“Respondents are understandably gloomy regarding the recent shift toward a tighter regulatory environment,” says Danielle Tierney, analyst with Aite Group and author of this report. “As a result, compliance and risk management issues will be the biggest drivers of operational attention and technology spending at hedge funds, with trading, portfolio management, and compliance systems scoring among the most important technologies for investment.”
This 26-page Impact Report contains 20 figures. Clients of Aite Group’s Institutional Securities & Investments service can download the report by clicking on the icon to the right.

Related articles