Strong Hedge Fund Launches in Q2 on Pace to Top ’24

What Emerging Hedge Fund Managers Can Do To Boost Their Chances Of Success

While 2024 was slow for hedge fund launches, this year has brought a renewal of activity, although new managers face some significant hurdles when launching their funds.

The TRADE predictions series 2025: A macro outlook on the markets

The coming change in US administration will see a front-loaded agenda of policy change in 2025. The reaction function of policy makers will be tested, with multi-lateral negotiations to be expected between the US and its trading partners – with uncertain results and even incongruent outcomes relative to current expectations. Adding to this, varying enthusiasm by central bankers and Treasury officials to lean on monetary and fiscal policy levers to stabilise growth, will see policy divergence and more importantly, policy miscalculation as the central theme over 2025.

The Rise of Co-Sourcing and Lift-Outs

In recent decades, emerging fund managers have increasingly turned to fund administrators to streamline operations, reduce costs, and mitigate risks. By outsourcing key functions, they’ve been able to focus more on investment strategies and growth. This trend is expected to continue into 2025 and beyond. However, what about established fund managers who began operations before this model became popular? How are they adapting to the new demands for operational efficiency, reduced risks, and investor satisfaction? The answer lies in evolving operational strategies such as co-sourcing and lift-outs.

These models provide established fund managers with a blend of efficiency, flexibility, and risk management while preserving some internal control. In this article, we explore how these strategies are transforming operational models for older asset management firms and enabling them to compete in a rapidly changing financial landscape.

Challenges for Established Fund Managers: A Changing Landscape
Many established fund managers have spent years building their operations without the benefit of outsourced administrative functions. While this structure may have worked in the past, today’s complex regulatory environment and increased investor demands are prompting many managers to reconsider their operational models.

Read what our subject matter expert, David Goldstein, had to say in Uncorrelated here.

‘Wasted Effort and Time’: Frozen Exams Leave Shops in Limbo

Compliance teams in the middle of Securities and Exchange Commission examinations have been left in limbo as the government shutdown stretches on — and the longer the shutdown lasts, the harder it will be for examiners to pick up where they left off, compliance consultants say.