New York (HedgeCo.net) – Institutional investment research firm eVestment recently released their 2016 Hedge Fund Industry Outlook and the firm sees the hedge fund industry continuing to grow. eVestment used data from 2015 as well as industry news and trends to formulate their outlook on the industry.
Perhaps the biggest finding from the report was that they see asset growth between $50 billion and $60 billion in 2016 with institutional investors leading the charge of new assets flowing in to the industry. While they expect growth for the industry as a whole, there are certain strategies that are expected to see greater inflows and some strategies that are expected to see muted growth.
Among the segments of the industry where they see the greatest inflows are mutli-strategy funds, macro funds and managed future funds. Areas where they see growth stalling are credit-based funds and event-driven funds.
As a whole the industry growth outlook looks to be on the same lines as 2015 and possibly even better.
“If full-year 2015 flows ultimately rest in the $50-$60 billion range, 2016 should be expected to meet, or beat this level. With interest in multi-strategy products as a key source of support, less drag from credit and event driven funds, along with continued interest in macro and managed futures products and interest across the directional and market neutral equity-focused universes, the outlook for the hedge fund industry appears to be generally more positive than the pockets of negativity in H2 2015 would lead us to believe.”