Hedge funds: a revamp is needed
Investors will regain trust in the process if hedge funds offer greater disclosure and transparency
The traditional hedge fund model is losing relevance in a shifting global investment landscape. Market-beating returns are difficult to achieve and high management and performance fees are harder to justify given the comparable returns from a growing universe of lower-cost passive investments.
Glen Copans from Investec Specialist Investments explains that traditional hedge funds were built to offer fund managers additional techniques to extract absolute returns in all market conditions.