What does the future hold for hedge funds?

A major transformation is taking place in the way private clients and institutions look at hedge funds. They need to rely on them increasingly to produce returns and need to make sure they choose a reputable manager for their money. Those frightened away by the financial crisis and some high profile frauds are slowly coming back, but they want to calculate fees on their own terms, and require a much deeper explanation of the strategy. At the same time, the type of people working for hedge funds is also changing. This is now regarded as more of a professional rather than lifestyle choice. Professor Amin Rajan of the CREATE consultancy talks to Yuri Bender about the rapid professionalisation of the alternative investments world