Fund managers missed the boat

Link: Hedge fund managers in taxman’s sights

Put together by KPMG and UK think tank Create, the report examined the views of 185 senior executives controlling $19,0000bn (£11,4200bn) worth of assets.

‘This is a business which quite simply was not run like a business and was only sustainable because the markets were powering ahead with seemingly unstoppable momentum,’ said David Lester, KPMG’s global head of investment management and funds.

Among the problems highlighted were a race to acquire assets to the detriment of profits, a leadership vaccum and an industry populated with inflated egos, the FT reported.

The report will be unveiled this week at Funds Forum in Venice.

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