WEST PALM BEACH, FL (www.hedgeco.net) – Hedge fund industry leaders have predicted that the hedge fund industry will continue to attract significant new business for a long time to come. The leaders made such predictions at the Reuters Hedge Fund Conference. John Paulson noted, “Hedge funds are a very important force in the markets.†He explained further, “His fund turns over their portfolio three to four times a year, and continues to “generate trading activity that’s disproportionate to the type of the assets under management.â€Â
Another speaker, Peter Schoenfeld, chairman and CEO of P. Schoenfeld Asset Management, told conference attendees, “We execute our trades through a number of different channels, some electronically through brokerage houses.” He also noted, “The general feeling is they (hedge funds) are becoming more of a percentage of the daily volume.” Such activities, according to another speaker at the conference, help to stimulate not only trading commissions, but also are additional businesses sources for prime brokerage companies.
According to published reports, investment banks earned about $25 billion representing about 12.5 percent of all their revenues from hedge fund activities in 2004. Some analysts predict that such revenues will continue to grow from one year to another. While past predictions about hedge fund’s doomsday scenario may be coming, speakers at the Conference are quite optimistic that hedge funds will continue to attract more interest in a long time to come.
Many of the speakers believe that hedge fund strategies have been proven to be reliable during the nearly 20 years since the hedge fund industry began tracking such performance. According to Hennessee Group, hedge funds have delivered double digit returns to its investors during the past 17 years on the average.
Paul Oranika
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net
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