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Hedge Fund Industry Landscape

Diversification is notably achieved by including alternative investments, such as hedge funds, in a portfolio asset mix. Asset owners seeking direct exposure to an asset manager’s investment strategies select the vehicle that best suits their needs, which involves choosing among various options.

These investment vehicles can be split into two broad categories:

  1. Investment vehicles directly managed by asset managers:
    • Commingled hedge fund;
    • Fund-of-one vehicles.
  2. Investment vehicles organized in the form of managed accounts:
    • On-balance sheet managed account;
    • Off-balance sheet managed account; or
    • Managed account platform such as Innocap.

Traditional service providers are embedded within each option.

Hedge Fund Industry Landscape