Despite the steep losses that hedge funds suffered in 2008 despite their supposed absolute returns, many wealthy investors continue to invest in them, but with strings attached, executives said at the Reuters Global Wealth Management Summit in Boston this week.
“We see continued dedication to hedge funds,” Catherine Keating, chief executive of JP Morgan Chase’s private bank, told Reuters. “The things our clients are focused on are how does that hedge fund generate its returns? How much is correlated o the market? Clients care about transparency—what fees are they getting charged? They don’t mind paying fees as long as they’re getting value.”