McDermott Will & Schulte, a global law firm

Bloomberg recently featured Kelly Koscuiszka’s insights on the growing use of “buyside alpha” programs, where some of the industry’s largest hedge funds are paying smaller investment managers for trading ideas as they seek new sources of investment intelligence and talent.

Kelly explains that interest in these programs has accelerated in recent months as more investment managers grow comfortable participating. “Buyside programs have gotten a lot more popular as of late, particularly in the past six months,” she notes, adding that contributors increasingly recognize that, “if done correctly, it doesn’t harm the other clients they advise.”

Her comments highlight the evolving dynamics of the hedge fund industry, where capital has become increasingly concentrated among the largest multistrategy firms while smaller managers continue to explore new ways to diversify revenue and build relationships with potential allocators. As these programs expand, Kelly’s perspective underscores the importance of structuring them thoughtfully to balance commercial opportunities with fiduciary and compliance considerations.