Monday, June 24, 2013

Why are US hedge funds sexier? A tale of two markets



From Hedgeweek:  Summer in London brings with it a whole new wave of would be hedge fund managers, who have either left their employers as part of a pre-bonus cost-cutting exercise, or are planning to do so once they have been paid the sums they will then use as the required investments to start up their new ventures.

Those currently involved in drawing up business plans, as well as incumbents taking a look at where they are within the industry in order to monitor levels of profitability, all have an interest in reviewing the competitive landscape. While the former need to know what they are up against before making the “big jump”, the latter also have to keep an eye on how the forces that shape the industry1 are evolving, to be able to forecast revenue and make the necessary adjustments to their business strategies, be it their product offerings, approaches to marketing, or the structuring of their operations.

….As it turns out, defining the market with a view to analysing competition provides those from the European side of the pond eager to make their mark in the hedge fund industry with a striking starting point: this is a global industry in which the top performers worldwide are managed from the US.


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