MONACO, Sept 27 (Reuters) – The number of hedge funds operating globally will shrink sharply over the next five years as rising cost structures and short-lived market trends divide the industry between boutiques and very large multi-strategy funds, the head of Tribeca Global Management said.
“There are 8,000 funds today and these will go down dramatically to 5,000 or fewer over the next five years and there will be a bifurcation in capacity,” said Tanya Styblo Beder, chief executive of Tribeca, Citigroup’s single manager proprietary hedge fund unit.
“Such a decrease will stem from rising cost structures as you will need a lot of scale to survive,” she said, speaking to a symposium held by the Information Management Network on high-performance investing.
