Risk.Net – This was not a “huge shift” compared with the last four to five years, according to Steve Nadel, partner and co-head of the firm’s investment management practice and lead author of New Hedge Fund Study. He thinks the popularity of equity strategies is simply due to the fact that “people understand them better. They are the easiest ones to implement.”
The study analyses investment strategies, incentive allocations/management fees, liquidity and structures as well as whether any form of seed capital was raised. The survey, however, does not cover managed account structures or ‘funds of one’ that may have a wider variation in their fees and/or other terms. The law firm believes its study, which covers the 2013 hedge fund launches of its clients, is representative of the industry. Seward & Kissel established the first hedge fund, AW Jones, in 1949 and currently has the largest hedge fund market share among US law firms according to database CogentHedge.com.