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Most Nordic hedge fund investors look to capital introduction teams for manager recommendations - SEB Nordic Hedge Fund Investor Survey

Tuesday, September 07, 2010
Opalesque Industry Update – SEB has published its first empirical Nordic Hedge Fund Investor Survey. Respondents represent over $630bn in assets from pension funds, insurance companies, and asset managers. Surprisingly, most investors have not yet filled their maximum allocation quotas the hedge funds, and as is the trend in other regions of the world, fund of hedge fund popularity is quickly declining as most investors said they will invest in single managers as opposed to FoHFs.

41% of the group will be increasing their allocations to hedge funds, and 68% of the hedge fund investments went to managers outside the Nordic region.

What are investors looking for?
Preferred strategies are long/short equity and global macro. Most require a track record minimum of a one-year track record, 31% say that assets under management do not have to be at a minimum level nor do they have a problem with lock-ups if they are required by the fund strategy. Also surprising is that many investors say their transparency requirements have not changed since 2008.

Some interesting facts about the allocation process include:
- The most common way to find hedge funds is through Capital Introduction teams, used by 76 % of the investors.
- Investors that have mandate to allocate 0–30 % of their total assets represent 80% of the investors, excluding Fund of Hedge Funds.
- Most Nordic Investors are confident in their own ability to pick hedge funds and don’t use external advisors when investing.
- When meeting a new hedge fund, the investor invests 5 % of the times in average.

You can download SEB’s Nordic Hedge Fund Investor Survey 2010 from Opalesque here:Source

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