Hedge fund growth will continue as more retail investors turn to these alternative investments. That is one of the conclusions of a Celent Communications report. Investors, who had previously ignored hedge funds, will be pushed into them by market forces, the report says.
Alternative investments, especially derivatives products, will experience significant growth in the coming years, according to the report.
"One only needs look at the demographics in the United States to be convinced of the pull factor," the report notes. "Just at the moment that American society is increasingly skewed toward retirement age, rising health care costs, the added strain of elder care, shortfalls in retirement assets – and an unsteady prospect for Social Security, not to mention the government's balance sheet – are forcing Americans to make critical decisions about life choices that require financial security."
Celent say hedge fund managers, aiming for retirement business, are going to need to be allied with big firms.
