Investing in the future: Power shifts away from hedge fund managers and towards investors

The financial crisis has resulted in a changed relationship between hedge fund managers and investors. Transparency, liquidity and fee structures are dictated increasingly by investors.

A few years ago hedge fund managers were powerful beings. They were able to command hefty fees in return for sizeable allocations from rich individuals wanting to grow their wealth through investments in a diversified, non-correlated asset class.

Investors who wanted more transparency or better liquidity were forced to shop around as managers, flush with capital, dismissed their demands.

Times have changed. Hedge fund investing is no longer seen as the preserve of the family offices and high net