How the hedge fund industry can help spur the responsible investment movement
Hedge fund firms have always embraced change and responded to investor demand. Responsible investment is no exception to this rule. Arguably, one of the biggest trends reshaping the global asset management industry today is having firms look to do well, while also doing good.
Every sector of the global asset management industry has a role to play in this transformation, and no role may be more important than that of the hedge fund industry. While the hedge fund industry is still relatively new to responsible investment, hedge funds, with their technical expertise and knack for innovation, can play a major role in overcoming some of the barriers faced by the responsible investment movement.
In a recent joint research study conducted by the Alternative Investment Management Association (AIMA) and the Cayman Alternative Investment Summit (CAIS), we found that, globally, hedge funds have at least $59 billion in assets under management specifically allocated towards responsible investments. This figure is likely to grow. Half of all hedge fund firms surveyed reported an increase in investor interest in responsible investment over the last 12 months, and nearly a third reported that they either already have a responsible investment expert on staff, or are planning on hiring one over the coming year.