Fundamental equity long/short hedge fund strategies face a challenging environment. Three trends — more hedge funds running the strategy, lower aggregate alpha in the industry and fewer stocks — are causing the problems, according to a report by Novus.
Hedge fund performance recovered in September from the less than stellar returns in August, according to Preqin data. The Preqin All-Strategies Hedge Fund benchmark returned 0.14 per cent for the month.
In a sign of the times and a shift in sentiment towards hedge funds, the Hedge Fund Standards Board (HFSB) has renamed itself the Standards Board for Alternative Investments (SBAI).
Hedge funds are back in favour with investors. A 3.5 per cent increase in new inflows during 2017 is forecast in the 2017 Credit Suisse hedge fund investor survey.