While macro and event driven strategies could find opportunities in the new year, the broader hedge fund market is likely to continue experiencing some pain in 2017 as investors question fees and look for a better alignment of interests, says Stuart Blair, director of research at Canterbury Consulting.

“By in large, clients are questioning the value-add of larger funds investing in larger, more commonly trafficked names,” he says. “Where’s the value-add in owning Microsoft or Amazon? We would have to agree; it’s a pretty hard sell on what a hedge fund can bring to bear that’s different than a long only fund in that space.”

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