Banks, lenders and other financial companies ticked down as traders hedged their bets on the outlook for profit growth. Bets on a sustained increase in Treasury yields this year have so far proved fruitless. In a promising development for the investment banking profits, there was a wave of deal activity and speculation on Monday. Hedge funds are still seeing outflows as low-cost, passive investment strategies grow in appeal. "Not surprising following continued performance struggles, hedge funds have come under increased pressure from institutional clients," said analysts at brokerage Jefferies, in a research note. "This represents both a fee and return issue. In a 'low return environment,' the focus on fees for all managers (especially alternative ones) is the primary issue. While the longer dated alternative strategies such as private equity and real estate remain in strong demand, the liquid side not surprisingly continues to experience the most pressure."
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-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
May 08, 2017 16:28 ET (20:28 GMT)