Inflows from the mainstream

Hedge funds can struggle below $100m, and are at the same time facing competition from mainstream managers fighting on their turf, launching absolute-return vehicles. A panel convened by KPMG in the Cayman Islands and chaired by Hedge Funds Review's David Walker proferred advice on how they can face this down, and the various challenges boutiques face.

Q. About 85% of managers were viewed as also-rans in a recent KPMG/Create report - Robert Swan of Lighthouse Partners, is this how you see the industry?

Robert Swan (Lighthouse Partners LLP): We look at the boutique question from two angles - the regulatory environment and the investor base. The regulatory environment has continued to create a large barrier of entry for boutique firms managing lower levels of assets who do not have the resources to build and maintain the infrastructure required