What the future holds for hedge funds

alternative investments

After the dotcom bubble burst many investors were attracted to the absolute return investment approach of hedge funds, however going forward it is unlikely they will make such great gains

The widening of the investor base has been the main driver for the enormous growth in both the number and importance of hedge funds over the last five years. The explanation for the dramatic expansion in demand from both retail and institutional investors lies in the unique approach of hedge funds and a change in investor attitudes across the broader investment community over the last five years. Unlike the mainstream investment world that confused risk with tracking error during the collective mania of the 1990s, hedge fund managers tend to focus on achieving a positive return regardless ...