Will the JOBS Act Lead Employees From Goldman, Merrill, and Morgan to Launch New Funds?
By StreetID Aug 28, 2012 2:55 pm
The answer seems clear, but it's not always smooth sailing.
That won't stop the JOBS Act from serving a greater purpose, however. "When the rules do finally come out about what is and what is not allowed, I think what this will do is really open up an opportunity for the hedge fund industry to experience massive growth," said Strachman.
"I think that you've seen over the last few years, in the wake of the credit crisis, in the wake of the poor economy, in the wake of the economic uncertainty and volatility in the markets, hedge funds have sort of been all to themselves in terms of asset flows. I think once the JOBS Act [and] the rules are put into place, and people understand how the game needs to be played, then you will see growth in the industry."
Further, Strachman said that there are two things that everyone knows: Markets don't always rise, and investors must protect themselves and continue making money when the markets go south.
"The only vehicles that allow you to do that are funds that are operating on both sides of the market," said Strachman. "That's why we'll see what I think will happen, which is more fund launches in 2013, more asset flows from investors -- not only just the pension plans and endowments and family offices -- but high net worth investors and others will be driving to these products because now there will be a better understanding of how these products work, and there will be a better understanding of how they can affect your portfolio. I think that's significant."
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