High fees and other barriers to entry for hedge funds could spur a rise in multistrategy firms where "multiple return streams can offer a competitive advantage," Tom Wrobel of Societe Generale Prime Services said. "Barriers to entry to hedge funds are only continuing to increase in terms of the amount of money to launch, regulatory approvals and ability to break even," he said.
Although investment advisers are typically attuned to risks associated with individual asset classes, they might be devoting less attention to operational risks, writes attorney Richard L. Chen. A focus on the three P's -- personnel, processes and privacy controls -- will minimize clients' risk of investment loss, asset theft or data leaks, he notes.
Regulatory filings show that the shares of Facebook, Apple, Amazon, Netflix and Alphabet are back in favor with US hedge fund managers, with allocations rising during the first quarter. FAANG stocks lost their luster as last year's bull run ended, but have since recovered to outpace the market with Netflix up 33% and Facebook rising 40%.
The Central Bank of Ireland will draw from experience overseeing derivatives rules under the European Market Infrastructure Regulation when it begins enforcing the Securities Financing Transactions Regulation in April, says Colm Kincaid, director of securities and markets supervision.
UK Prime Minister Theresa May says the Brexit proposal she will bring to Parliament in early June is a "bold offer." Cabinet minister Rory Stewart says he hopes provisions protecting workers' rights will attract support from the opposition Labour Party, but party leader Jeremy Corbyn says it will oppose the measure.