Hedge Fund Managers Expect “Massive” Pay Cut In 2016

Jon Alternative Media, Blogosphere, Economy

With soaring hedge fund shutdowns, and countless “smart money” asset managers underperforming either their benchmark or the overall market, 2016 is shaping up as the worst year for the hedge fund industry since the financial crisis. Actually, in some respects it is even worse than that: according to Eurekahedge, the number of hedge fund startups, which were surging a decade ago, have fallen off a cliff in 2016 and are heading for their worst year since 2000.
According to Bloomberg, there have been just 457 fund launches through the first nine months of this year, compared to 876 in 2015, citing Eurekahedge numbers. “The capital raising environment for newer launches is quite difficult to put it mildly and with existing offerings out there returning low-single digits over the last three years, investor appetite is quite selective to say the least,” said Mohammad Hassan, senior analyst at Eurekahedge.

This post was published at Zero Hedge on Oct 20, 2016.