Hedge funds seem to be increasingly turning to FinTech startups to open up new investment opportunities in previously illiquid, fragmented markets.
NH: Can we expect to see more hedge fund investors turning to alternative investment in the future? Is this a new pattern? RS: Hedge funds are ultimately built to find returns, either in traditional markets or elsewhere. Their challenge is the ability to invest in an asset class at scale, which sometimes limits their ability to participate in alternative investments. As fintech continues to consolidate traditionally fragmented asset classes, either through marketplace or asset management models, I feel we’ll see more hedge fund and institutional participation. After speaking with Sturm, it quickly became clear to me that there is a significant change on the horizon. AlphaFlow’s latest seed round funding feels like the beginning for a new era where I suspect they will continue to innovate and make advancements in the investment industry.
https://thenextweb.com/contributors/2017/10/05/alphaflow/#.tnw_DQBw4xA3