The ten biggest hedge fund trends for 2016

Agecroft outlines things to expect in the coming year

More hedge funds shutting down, continued pressure on fees and success for smaller managers are predicted as the biggest trends in the hedge fund industry by consulting firm Agecroft.

Each year, Agecroft, headed by managing partner Donald Steinbrugge, predicts the top hedge fund industry trends through their contact with more than 2,000 institutional investors and hundreds of hedge fund organisations. Below are Agecroft's predictions for the biggest trends in the hedge fund industry for 2016: 1.Reduction of expected returns for a diversified hedge fund portfolio. Hedge fund performance is driven by a combination of alpha (manager skill) and beta (market-driven return). From 2009 to the beginning of last year, as both the fixed income and equity markets experi...