The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

How will you embrace innovation to illuminate competitive advantages?

2017 Global Hedge Fund and Investor Survey

Executive summary

Robotics. Big data. Artificial intelligence. Blockchain. Just five short years ago, many would say even more recently – few would have uttered any of these words in the same breath as “hedge fund.” Whether viewed as innovation or evolution, the hedge fund industry has joined with the vast majority of the world in acknowledging the advent of, and the need to embrace, these business-altering technologies.

Technology-driven disruption is changing financial services organizations enterprise wide. Today, it’s not about having a digital strategy — it’s about defining your business strategy in a digital world. Disruptive innovation will touch every aspect of our lives.

It is the future of business, and the world. The accelerated pace at which everything is changing means that the industry has to look at things differently and think in new ways. The industry must ask:

  • How do we ensure we exist tomorrow?
  • How do we streamline and automate our operations?
  • How do we come up with new ideas and modernize our business model?

The industry must become more agile, to anticipate and manage shifting investor demands, embrace convergence across asset classes and seize opportunities as they present themselves both within traditional financial services and beyond.

Methodology

From June to September 2017, Greenwich Associates conducted:

  • 106 telephone interviews with hedge funds representing just over $1.3 trillion in assets under management
  • 55 telephone interviews with institutional investors (fund of funds, pension funds, endowments and foundations) representing nearly $1.6 trillion in assets, with roughly $260 billion allocated to hedge funds

About this survey

Our 11th annual Global Hedge Fund and Investor Survey reflects on the path that led the industry to its present state, and what the future might bring.

We extend thanks to the scores of managers and investors who offered their viewpoints on what drives and shapes our industry. Their invaluable contributions are the foundation of this year’s report.

 

Infographic

Key observations

Managers continue to grapple with changing investor demands and competition from other alternative asset classes

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While 66% of managers have adopted or are considering non-traditional fee structures to attract investors.

Investors look for managers to innovate the front office to generate more alpha

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50% of managers said they have implemented or plan to implement something innovative with their tech investments, and 40% said the same for automating manual processes.

Managers are looking to alleviate continued margin pressures by investing in technology to innovate their operating models

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While 58% of investors said that evaluating future investment professionals is an important consideration in their decision to allocate.

Technology advancements and increased competition for talent are leading to a shift in talent management priorities

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Contact us

Global

Michael Serota
Global Leader, Hedge Fund Services

Americas

Natalie Deak
Americas Co-Leader, Hedge Fund Markets

David Racich
Americas Co-Leader, Hedge Fund Markets

EMEIA

James Beszant
EMEIA Leader, Global Hedge Fund Services

Dan Thompson
Global Hedge Fund Services

Asia-Pacific

Alpha Tsang
Hong Kong Hedge Fund Markets