Investing in alternatives: A closer look at the hedge funds industry

Over the past three years, hedge fund closures have outpaced launches. Many high-profile funds, such as Perry Capital, Eaton Park and Hugh Hendry's Eclectica, have been wound up. Nonetheless, investor interest towards the sector remains strong.  Industry assets swelled to a record $3.2trn at the end of 2017. Yet, the industry is adapting to trends such as fee reductions, improving transparency and greater discipline around capacity. An allocation to hedge fund strategies can improve the risk-return characteristics of a diversified investment portfolio by providing an alternative to pu...