Most small and emerging managers expect their headcount to increase in the next three years, according to a new joint study by The Alternative Investment Management Association (AIMA) and prime broker Global Prime Partners. The survey, which polled 135 small and emerging managers and 25 institutional hedge fund allocators, examines the profitability of small and emerging managers, including the average breakeven point. The survey also explores these managers’ methodologies for balancing fees and costs, outsourcing practices and plans for growth. For additional recent insights from AIMA, see “Study Examines How Hedge Funds Are Adapting to a Less Liquid Market, the Need for Better Liquidity Reporting and the Future Role of Hedge Funds As Price-Makers” (Dec. 15, 2016); “AIMA Survey Identifies Key Ways That Managers Align With Investors, Including Alternative Fee Structures, Skin in the Game and Customized Investment Solutions” (Sep. 22, 2016); and “AIMA (Japan) and Eurekahedge Survey of Investors in Japan Reveals Concerns With Hedge Fund Manager Registration Requirements, the Volcker Rule and Success of ‘Abenomics’” (Jun. 23, 2016).