Will Hedge Fund Industry Assets Double in 5 Years?

Hedge fund industry assets could more than double by the year 2016, according to a recent survey from Citi Prime Finance. Institutional investors are growing increasingly comfortable with the hedge fund model and the risk management that these funds offer. Another key factor in the projected industry growth is the fact that hedge funds are developing new products that will directly compete with traditional, long-only fund managers.

http://richard-wilson.blogspot.com/2012/06/hedge-fund-industry-assets.html

What do you think: Is this overly optimistic? Will performance have to exceed expectations for this projection to become reality by 2016?

Hedge Fund Industry Assets

richard-wilson.blogspot.com

Hedge fund industry assets could more than double by the year 2016, according to a recent survey from Citi Prime Finance. Institutional investors are growing increasingly comfortable with the hedge fund model and the risk…

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The hedge fund industry may double, but there is little evidence that the assets are any safer now than they were in 2008 when 1000 hedge funds collapsed and $461B was lost. The industry now is as likely to experience endogenous risk or internal risk as exogenous risk or external risk. Awareness to change, the industry needs to comprehend, begins not with data and an algorithm but a sound process of discovery and the ability to read meaning.

 

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