Industry experts have debated the end state of convergence between traditional (regulated) investment managers and hedge fund managers for years. Perspectives vary about whether competition, regulation, portfolio allocation trends, and market events will eventually push traditional investment managers and hedge funds towards common ground. Those who do believe that convergence is inevitable frequently do not agree about the pace at which change will occur or the extent to which the lines will blur.
Now that the worst of the recent economic crisis is seemingly in our rear view mirror, we thought it was time to re-examine the current state - and projected future state - of convergence between traditional investment managers and hedge fund managers. Are traditional managers launching new products that contain shorting components or deploying additional assets in hedge funds or fund of hedge funds? Are hedge funds launching funds regulated by the Investment Company Act of 1940 or ?hybrid funds? that are not regulated but adopt characteristics of regulated funds? Have market events caused hedge funds to provide greater transparency into investment processes and improve reporting? These strategic moves - or plans to take such steps - are all evidence of steps towards convergence.
We are pleased to bring you this report, which details the results of a new study by BNY Mellon and Greenwich Associates that examines the extent to which the lines have blurred between traditional investment managers that mainly employ long-only strategies and hedge fund managers. The findings of this study are based on 71 in-depth interviews with traditional investment managers, hedge funds, and institutional investors.
Breaking Down the Walls approaches the topic of convergence with a 360 degree perspective.
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Industry experts have debated the end state of convergence between traditional (regulated) investment managers and hedge fund managers for years. Perspectives vary about whether competition, regulation, portfolio allocation trends, and market events will eventually push traditional investment managers and hedge funds towards common ground. Those who do believe that convergence is inevitable frequently do not agree about the pace at which change will occur or the extent to which the lines will blur.
Now that the worst of the recent economic crisis is seemingly in our rear view mirror, we thought it was time to re-examine the current state - and projected future state - of convergence between traditional investment managers and hedge fund managers. Are traditional managers launching new products that contain shorting components or deploying additional assets in hedge funds or fund of hedge funds? Are hedge funds launching funds regulated by the Investment Company Act of 1940 or ?hybrid funds? that are not regulated but adopt characteristics of regulated funds? Have market events caused hedge funds to provide greater transparency into investment processes and improve reporting? These strategic moves - or plans to take such steps - are all evidence of steps towards convergence.
We are pleased to bring you this report, which details the results of a new study by BNY Mellon and Greenwich Associates that examines the extent to which the lines have blurred between traditional investment managers that mainly employ long-only strategies and hedge fund managers. The findings of this study are based on 71 in-depth interviews with traditional investment managers, hedge funds, and institutional investors.
Breaking Down the Walls approaches the topic of convergence with a 360 degree perspective.
