KPMG and AIMA (Alternative Investment Management Association) recently produced a comprehensive review of the hedge fund industry, which talks about the impact of changes in regulatory compliance and growing investor demand for transparency and due diligence. Hedge funds seem to have responded with increased spending on headcount and technology in an attempt to move with the times and stay ahead of the curve.
The review suggests that with the advancement of hedge funds’ infrastructure and operational processes with respect to transparency, compliance and due diligence, has come an influx of new institutional capital into hedge funds, and a shift away from catering almost exclusively to high net worth individuals and family offices.
It seems the industry is conforming as well as evolving, and this report suggests a very positive outlook for the larger hedge funds in particular. Click on the following link to read the report in full 2012 KPMG/AIMA Global Hedge Fund survey