In 2016, hedge fund investors’ return expectations will trend lower, while industry assets reach a new high, according to Donald Steinbrugge, founder and managing partner of Agecroft Partners. In a highly competitive marketplace, Steinbrugge says, hedge funds will need a high-quality sales and marketing strategy in order to raise assets. For the seventh consecutive year, Agecroft, a hedge fund and consulting firm, predicts industry trends through its contact with some 2,000 institutional investors and hundreds of hedge fund firms. Hedge fund performance is driven by a combination of manager skill and market-driven returns — alpha and beta. From 2009 to...