Client Disappointment in Hedge Funds Continues into 2017

(Investopedia) Although hedge fund returns are actually looking up (at least in comparison with the most recent years), firms and their management are nonetheless facing a growing client revolt. According to reporting by Bloomberg, hedge fund managers have continued to earn astronomical salaries and bonuses, while their funds have failed to bring in the big results that they are reputed to earn. 2016 saw a growing number of institutional investors and other major clients start to divest from hedge funds as a result of this disappointment, and some analysts expect the trend to continue into 2017 unless something significant changes in the hedge fund world.

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