Barclays Expects a 2019 'Performance Rebound' in Hedge Funds

The video discusses the challenges faced by hedge funds in 2018, including AUM decline and investor frustration. It highlights a shift from traditional equity strategies to those offering better downside protection and alpha generation. The outlook for 2019 is optimistic, with expectations of performance rebound and improved conditions for alpha generation. The video also examines fee structures, showing that higher fees can correlate with better returns. Industry consolidation and increased interest in Asia are noted as key trends.

What was a significant trend observed in hedge funds during 2018?

• Decline in AUM due to performance and outflows

• Significant growth in net inflows

• Increase in traditional equity strategies

• Stable performance across all strategies

How did hedge funds perform in the first quarter of 2019?

• There was a strong rebound and rally

• They faced significant outflows

• They experienced a decline in risk-based assets

• Performance remained stagnant

What was observed about the relationship between fees and returns in 2019?

• Returns were better with median fees

• Higher fees were associated with better returns

• Lower fees always led to better returns

• Fees had no impact on returns

What was a key theme in the hedge fund industry regarding portfolio management?

• Avoiding concentrated portfolios

• Concentration with 11 to 20 managers

• Focusing on the cheapest managers

• Diversification with over 50 managers

Which region showed strong interest from investors looking to increase exposure?

• Europe

• North America

• South America

• Asia