New Hedge Managers Are Bullish on Fund Launches
Emerging hedge fund managers are more optimistic about starting funds this year as they hope to capitalize on increased market volatility and a more welcoming regulatory environment in the U.S. under President Donald Trump.
The higher hopes come after several lean years for the hedge fund market that hit its newest players the hardest. It has been difficult for hedge fund managers to outperform in recent years as stock markets moved steadily higher, according to David Goldstein, director of fund services at STP Investment Service.
The likelihood of greater volatility in markets, particularly around potential moves by the Trump administration, will give hedge fund managers – whether they are new or existing managers – an opportunity to shine, he said.
“Definitely, there’s a lot more optimism,” Goldstein said. “It’s definitely a lot more active than January of last year. There’s no doubt about that.”
“Typical right now [in terms] of an emerging manager, what we see is a lot of friends and family money,” Goldstein said. “Several opportunities that I am working with people on right now are funds that are breaking off from a larger shop and they are getting an investment from a larger shop… That’s not necessarily a trend that we’ve seen a lot over the past couple of years.”
Read what David and other SME’s had to say in FundFire here.
