CANNES, France (Reuters) – Finding the talent to move assets around quickly to take advantage of trends that sometimes last for only short periods is a big challenge facing the hedge fund industry, aconference heard on Wednesday.
“Market trends are significantly shorter, sometimes last for only 72 hours. Today’s opportunities come and go with speed,” said Tanya Styblo Beder, chief executive of Tribeca Investments.
“Thirty percent of returns going forward will come from tactical asset allocation … you need the right business model to do that … (and) it’s a talent industry.”
Beder thinks that going forward the difference between the best and worst performing hedge funds will be substantial.
One business model is multistrategy hedge funds, which run several strategies under one umbrella and can move money around quickly and efficiently to markets where they see the greatest potential for gains.
