OPINION – Is the sellside ready for an end to the hedge fund bonanza?

Investment banks are more dependent than ever on hedge funds for revenues. But what if we have hit peak hedge fund business?Hedge fund underperformance has created a certain degree of Schadenfreude for industry watchers. The HFR index of hedge funds was up a mere 6% in 2023, dramatically behind most stock markets.Hedge fund returns have in fact lagged for the past decade, with poor industry inflows, and this hasn’t stopped them from being a growing client base for investment banks. This is..