Small players drop out of hedge fund market

Interest in hedge funds is at an all time high but small players are finding the market difficult to break into or hold onto.

According to research carried out by online data provider Morningstar, fund groups in Europe are moving away from the belief that hedge funds will dominate the launch landscape in the coming 12 months.

Of 61 European fund groups questioned in April, 66% now believe launches in the next 12 months will be dominated by long-only. That figure was up from just 47% in January.