Tue, Aug 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

61% of hedge fund allocations come from institutional investors - Preqin

Thursday, February 10, 2011

Opalesque Industry Update - 61% of hedge fund capital now comes from institutional investors; managers adapting to suit demands of new investor universe.

In the latest Preqin study, hedge fund managers revealed that they are altering their fees, risk adjustment procedures and strategic offerings to attract institutional investors to their hedge funds. Institutional capital is at an all time high within the sector, and 85% of the 60 hedge fund managers interviewed believe that it will increase even more over the next 18 months.

The study showed:

• 46% of managers have put more risk management procedures in place as a result of having more institutional investors in their funds.

• 42% have reduced the fees charged on funds.

• 21% have introduced alternatives to commingled funds to attract or maintain institutional interest.

• 57% of respondents stated that over half of their assets come from the institutional sector • 47% of managers have seen an increase in institutional capital over the past three years, increasing to 56% over five years.

• Almost half of those surveyed plan to market specifically to the institutional sector in the coming 12 months.

• 15% expect to launch UCITS-structured hedge funds; institutional investors are increasingly keen to take advantage of the transparency and liquidity requirements of these fund structures.

• The mean AUM requirement of a hedge fund investor is $320mn; hedge funds with over $10bn in AUM have significantly more institutional investors than their smaller counterparts.

Full study can be viewed here: Source

(press release)

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new