Are We Losing Faith in Hedge Funds?

The video discusses the current state of hedge funds, highlighting their underperformance and the skepticism surrounding their fee structures. It explores how hedge funds are adapting to these challenges by focusing on diversified strategies and portfolio characteristics. The rise of Liquid Alt ETFs is examined, noting that while they add a component to portfolios, they do not pose an existential threat to hedge funds.

What has been the recent performance trend of hedge funds?

• They have consistently outperformed expectations.

• They have underperformed in both absolute and aggregate terms.

• They have matched expectations exactly.

• They have only underperformed in aggregate terms.

How is the hedge fund industry adapting to the resistance against its fee structure?

• By focusing on high-profile managers only.

• By shifting towards more diversified and strategic portfolios.

• By increasing fees across all areas.

• By reducing the number of strategies offered.

What change in client behavior is noted in the hedge fund industry?

• Clients are moving away from hedge funds entirely.

• Clients are increasingly investing in high-profile managers.

• Clients are showing a positive change in allocation to hedge funds.

• Clients are focusing solely on traditional investments.

What is the perceived threat of Liquid Alt ETFs to hedge funds?

• They are not considered relevant to hedge fund strategies.

• They are viewed as a complementary component to hedge funds.

• They are considered an existential threat to hedge funds.

• They are seen as a complete replacement for hedge funds.

How do Liquid Alt ETFs contribute to a portfolio?

• They drive alpha through the portfolio.

• They eliminate the need for hedge funds.

• They decrease the overall risk of the portfolio.

• They focus solely on traditional market investments.