Cay Compass – New regulations and investor demands have put financial pressure on many new and smaller funds, which in turn squeeze the fees of service providers, delegates at the GAIM Ops conference on hedge fund due diligence heard last week. Meanwhile, funds of funds are losing ground as institutional investors increasingly invest directly into hedge funds. Although investors want more transparency, the funds available for due diligence work are often stagnating rather than growing with the increasing volume of work that needs to be done, panellists said.
The three-day GAIM Ops conference held at The Ritz Carlton, Grand Cayman from 23 to 25 April sketched the developments of the hedge fund industry in recent years and how these impact the evolving relationship between fund managers, service providers and investors.
