Shrinking returns and escalating investor demands. Downward pressure on fees and unrelenting requirements to have robust operating models. This year, competing forces came together to culminate in the perfect storm. In a year marked by lackluster performance and rising investor expectations, one inevitably asks: Will the challenges of today pave the way to a more successful tomorrow? That all depends on how you respond. As we look back on the year that has passed and look ahead to 2017, a few points come into sharp focus. Differentiation has become the touchstone of the future, and those funds that strategically embrace change for the right reasons and modify their business model in a way that responds to investor demands will be the ones that prosper going forward. Today, the pace of change is accelerating, and the magnitude of its impact and relevance are amplifying. As you turn the pages of this, our 10th annual Global Hedge Fund and Investor Survey, Will adapting to today’s evolving demands help you stand out tomorrow?, we hope the observations that have been gleaned help contribute to an ongoing and healthy dialogue that promotes the continued development and advancement of the global hedge fund industry.
First, we would like to extend sincere thanks to those managers and investors who provided viewpoints into the direction and development of this survey, as well as express appreciation to the 100 managers and more than 60 investors who gave their time and insight to provide such robust results. We believe that this combination of perspectives provides invaluable observations — both commonalities and differences — that continue to drive and shape our industry.