Hedge Funds Overcome Fundraising Challenges

Both hedge fund investors and management showed notable signals of trust in alternative investments in 2021, as the pandemic’s most severe business barriers began to lessen, says the Seward and Kissel ‘New Hedge Fund Study.’ Even though the epidemic posed obstacles in 2021, it found that new management were able to overcome the fundraising challenges that plagued the pandemic in its early phases. Additionally, in 2021, the hedge fund business was particularly active as members were keen to take advantage of current market possibilities. Investors’ increased demand for hedge fund techniques may be contributing in part to a recent trend: fund resistance to fee compression. In 2021, management costs for equities funds remained constant at 1.52 per cent (up from 1.51 per cent in 2020) while fees for non-equity funds increased to 1.66 per cent (up from 1.52 per cent in 2020).