New York, NY, USA
July 18, 2008

Challenges and Innovation in the
Hedge Fund Industry

Table of Contents

Return to report Abstract

Executive Summary 3
Introduction 5
Overview of the Current Market Environment 6
  Hedge Fund Inflows 6
  Performance Data 8
  Hedge Fund Liquidations 10
  Tightening Lending Standards 14
  Industry Responses 15
Permanent Challenges and Industry Responses 18
  The Separation of Alpha and Beta 18
  Industry Responses 19
  New Frontiers of Risk 20
  Industry Responses 23
  Institutionalization of the Hedge Fund Industry 27
  Industry Responses 33
  Growing PR Pressures 36
  Mounting Regulatory Pressure 38
  Industry Responses 38
Conclusions 42
 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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