Smaller hedge funds face uphill struggle to increase assets under management

Small to mid-sized hedge funds and funds of hedge funds in general continue to face obstacles to raising capital. Increased interest by institutional investors focuses mainly on larger fund managers.

What is the climate for raising assets?

Duncan Crawford, Newedge
Like the British summer, the climate for raising assets is temperamental – bright spells with occasional showers.

The fund of hedge funds (FoHF) universe remains in flux, with continuing consolidation and redemptions. This has benefited emerging hedge fund managers who can offer more favourable economics. Many smaller groups are rolling out advisory propositions in order to retain assets, albeit with lower fees. However, with reduced