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From Precy Dumlao, Opalesque Asia:
The latest survey conducted by JP Morgan Prime Brokerage, JP Morgan’s brokerage unit, showed that while 2010 will see net inflows, the hedge fund industry is experiencing the early stages of a massive reallocation of existing capital driven by a major shift in investors sentiments.
In a 34-page report titled”Tectonics: Shifting Investor Sentiment and the Implications for Hedge Fund Managers,” JP Morgan surveyed 300 institutional investors for its 7th annual Institutional Investor Survey. The result was intriguing, as the majority of those polled said they were changing their attitude towards hedge funds.
An overwhelming majority (97% of the respondents), indicated they had plans to make new allocations to hedge funds this year, and at least 60% said they would increase the size of their average allocation. However, the net inflows will be modest as asset flows remain at or below their historic averages.
“Many investors we surveyed continue to deal with the overhang of the financial crisis. Many suffered substantial erosion of their capital bases, and nearly all of the investors we spoke with redeemed some portion of their hedge fund investments in 2009. But we found reasons to be optimistic as well. Respondents recognized that hedge fu...................... To view our full article Click here
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