What is the hedge fund of the future?

The hedge fund industry was born of disruption. Since then, hedge fund firms have been at the forefront of investment, embracing change and constantly innovating to deliver for their investors. Today, however, hedge fund firms face a series of wrenching changes, which have already reshaped industries around the world.

Changing investor expectations are forcing hedge fund firms to rethink the investment solutions that they offer. The pace of technological change and the rise of artificial intelligence and other disruptive technologies is pushing hedge fund firms to re-evaluate how they operate and invest. At the same time, hedge fund firms are having to contend with increasing investor demands for more responsible investment. It’s no longer just enough for hedge funds to do better—they must do good as well.

Many have questioned what the future holds for the hedge fund industry given its history of innovation. What kind of products will hedge fund firms offer to investors in the future? How will they reconcile investor returns with a greater push for social responsibility? Will hedge fund firms even exist in the future or will they have been replaced by robots and the rise of the machines?

Addressing these questions and more, some of the most senior men and women in the global hedge fund industry have put forward their visions of the hedge fund firm of the future in a major new report authored by AIMA and sponsored by Aberdeen Standard Investments, to be released next Monday, April 16th.

That report, Perspectives: Industry Leaders on the Future of the Hedge Fund Industry, is based on candid and wide-ranging conversations with 25 of the leading figures in the industry, who collectively account for over 300 years of industry leadership and manage in excess of $500 billion in assets under management. Among the contributors to this piece include Sir Paul Marshall (Chairman and CIO of Marshall Wace), Luke Ellis (CEO of Man Group), Dr Leda Braga (Founder and CEO of Systematica Investments), Tom Hill (Chairman of BAAM, Vice-Chairman of The Blackstone Group), Ken Tropin (Founder and Chairperson of Graham Capital), Andrew McCaffrey (Global Head of Client-Driven and Multi-Manager Solutions at Aberdeen Standard Investments), and Fiona Frick (CEO of Unigestion).

To access this paper for free, please go to www.aima.org next Monday April 16th. The paper will also be the subject of a series of launch events where you can hear first-hand the views of some of the principals who have contributed to this paper. Its global launch will take place in London on the evening of April 16th. Thereafter the paper will go on the road with events planned for April 24th in Toronto, and April 26th in New York followed by Hong Kong and Singapore on May 14th and May 17th. Further details on attending these events can be found on our website at https://www.aima.org/events.html as well as in our events newsletter and regional updates.