Investment management: More consolidation could encourage convergence

The sixth annual report on global investment management by KPMG has revealed that further convergence between hedge funds, private equity companies and long-only managers is to be expected.

The report, released in November, was compiled from a survey of three sets of key players: long-only and alternative investment managers; pension funds; and administrators of long-only and alternative investments. Their responses have revealed three key trends.

The first is the convergence between long-only and alternative investments, as more participants in each are adopting the techniques of the other. Secondly, that between alternative investments themselves, with private equity managers and hedge funds becoming more closely aligned.

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