New hedge fund launches are at their lowest levels in more than a decade, and funds big and small are struggling to grow their assets.
Hedge funds, especially smaller ones, are growing their presence on digital platforms like SumZero and DarcMatter, while traditional in-house marketers have become less desirable at big and small funds, data show. Since last July, 160 hedge funds have joined SumZero's platform, including 50 this year, according to the company. Marketing recruiter Jensen Partners also found that hedge funds of all sizes hired 16% less marketers last year than in 2017.
"If this was 20 years ago, we would already have $2 billion and be closed" because you could raise capital on performance, he said. that work with Goldman Sachs' prime brokerage are cutting down the number of managers they work with, and are looking for a closer relationship with the funds they keep on, said Kristin Kramer, head of hedge fund capital introduction at Goldman. Soros Fund Management, George Soros' family office,redeemed money from 27 out of the firm's 65 external hedge fund investments, and asked several funds it stayed invested in for better terms.
"Before it was give me money and I'll do what I want. Now, it's 'I have this idea, and there's extra capacity beyond just what I can do in my fund, here's the opportunity for you,'" said Saunders. But while large funds can afford to offer concessions to investors, it's more challenging for small funds
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Source: CNBC - 🏆 12. / 72 Read more »