The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Huge growth in store

Investment banks: How to succeed at succession     

Reflections on running an investment bank: John Costas

As John Costas was preparing to leave his role as CEO of UBS investment bank to set up an alternative investment unit for the Swiss bank, he outlined some of his thoughts on the hedge fund business for Euromoney:

"My macro view on hedge funds is that there's huge growth in store. I'm not talking about between one quarter and the next, as there will always be fits and starts. I'm talking about over the next few years.

"High-net-worth clients are becoming increasingly sophisticated, and are looking for more customized information and products, and that is far from being realized.

"Meanwhile, hedge funds will become more transparent and identifiable with particular strategies.

"The recent low returns on capital at hedge funds is quite possibly the result of growth that outstripped expertise. But there's still a great deal of room to grow. Look at the equity market: in the 1980s only 17% of the US population owned stock. By the end of the 1990s that had hit 50%. Today hedge funds account for just 5% of funds under management.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree