Hedge funds may see a new dawn, analysts say—but sailing won’t be smooth

Following a rough 2016, a year marked by high-profile fund closures, redemptions, and underperformance, analysts are increasingly optimistic that the new year, along with the new presidential administration, will mean a turnaround for the beleaguered industry. But while the expected economic environment could increase the potential for outperformance, many of the long-term headwinds facing hedge funds will likely remain intact.