The demise of the industry has been completely over-exaggerated. Rest assured, hedge funds are alive and well.
It is true that new fund launches have decreased significantly over the last few years and the data around this area continue to show weakness. Still, investors in a never-ending search for alpha are continuing to look to hedge fund managers to provide returns, regardless of how strong the equity markets are performing. Hedge funds are here to stay.
Anyway, one who doesn’t think so is clearly not in tune with the demands, wants and needs of investors.I can tell you that over the last few weeks, we have seen a significant uptick in inquiries on the HEDGEAnswers site. I wouldn’t say that the water is pouring over the dam yet, but the trickle is beginning to grow. I believe that autumn will see the launch of a significant number of funds that will carry over to the winter of 2019.
Fear not, dear friends, the hedge fund industry is alive and well and beginning to start to kick.
That being said, raising assets is still quite hard. Investors are getting more demanding and focusing their efforts on performing and executing complete and thorough due diligence. The days of getting an allocation on the golf course or at a conference are over. The only thing a manager, either budding or existing, can do is to be prepared.
And remember: If you don’t know the answer, it’s OK to say that you don’t know the answer and that you will get back to them.
Things that drive me crazy
Well, the only thing I can say is that a lot of things have been driving me nuts as of late and while I would like to put them all down, I am going to only write about one.
Recently, I was out to lunch with someone for whom I have the utmost respect and admiration. He had a problem with the meal he ordered: His food was not cooked properly. While many of us probably would have just grinned and bore it – this was not an option for him. He was polite but strong with his request to have the food prepared as it should be. The restaurant staff, however, seemed more than perturbed at his insistence on getting it right. Eventually, though, the meal was brought out right.
This incident made me think of two things: One, that there is nothing wrong with asking for something to be made properly; and two, people should always take pride in their work. Clearly the kitchen staff at this restaurant do not take pride in their work; if they had, the meal would have been right the first time.
We are back
Friends, it has been some time since my last post here at HEDGEAnswers and a lot has gone on – some good, some bad and some indifferent. I am pleased to tell you that we are nearly 100% done with the revamp of the site and in early Fall we will once again be hosting the HEDGEAnswers’ sessions. Look for more information in the next few weeks. If you poke around the site and find some issues, please do not hesitate to get in touch. Thanks as always for your continued support.
A final note of thanks
I have to say thank you to the powers that be at Sirius Satellite Radio for the U2 Experience channel that is on the dial this month. It is just great. Lots of old tunes that get little air play, reminding me of high school and college years. If you haven’t listened to it yet, I highly recommend it.