Last year's improved performance sets the scene for a strong 2018
There was improved performance for the global hedge fund industry in 2017 but can this year be even better?
Optimism is rising among fund managers with 67% of those surveyed by Preqin saying that their assets under management (AUM) grew in 2017, and 64% expecting further growth in 2018.
Total AUM reached a new high of U$3.6 trillion in 2017, and although 31% of respondents said the environment had become more challenging, this was down from the 47% who said that in November 2016.
The share of fund managers who said their AUM has met or exceeded performance goals in 2017 was up to 74% from 60% in Nov. 2016.
The Trump Bump was cited by 61% of respondents as the driver of better performance while 44% believe it was US tax reforms.
And when asked about the largest headwinds to returns in 2017, low levels of equity market volatility was the top answer (35%).
“With markets proving choppier in 2018, this could signal an improved environment for hedge funds – despite fund managers finding the market volatility challenging in February,” added Bensted.
