In 2017 hedge fund managers continued to adjust to an evolving global regulatory environment and changing marketplace. The year brought additional challenges from investor scrutiny of the asset class and the evolution of new financial products, particularly digital assets. There were also positive developments as many managers began to reverse a sustained stretch of poor performance, and some institutional and pension investors increased allocations.
Hedge fund managers continued to experience significant changes and expansion in regulation. Areas of substantial attention for hedge funds in 2017 included data protection and cybersecurity, allocation of opportunities/allocation of fees and expenses, and the impact of new tax reform legislation.