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Komfie Manalo, Opalesque Asia: Long-term confidence in hedge funds remains strong amongst the institutional investor community, with a majority of investors saying they would continue investing in the asset class. A survey by Citi Prime Finance showed that 63% of investors and intermediaries, primarily institutional, representing close to $1tln of combined assets under management, have more than $1bn allocated to hedge funds. Half of those investors have allocations exceeding $2bn.
The survey also found that some 53% of asset allocators stated they were planning on increasing their exposure to hedge funds over the next three years – with macro, equity long-short and CTAs being the preferred investment strategies.
Commenting on the findings, Daniel Caplan, EMEA head of investor services sales, Citi, said, "Hedge funds represent a third of profits generated by the asset management industry and these findings confirm the importance of the sector to institutional investors. As interest in Risk Premia solutions continues to rise, we expect hedge funds to play an increasingly important role in providing diversification through risk-aligned strategies."
He added that 69% of respondents, hedge funds are the preferred investment vehicle for accessing Risk Premia, followed by investment bank products (15% of respondents), customized soluti...................... To view our full article Click here
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