Sun, Feb 18, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin forecasts investments into hedge funds could reach up to $195bn in next 12 months

Tuesday, July 12, 2011
Opalesque Industry Update - According to Preqin, a data provider for the alternative assets industry, investments into hedge funds could reach up to $195bn in the next 12 months.

The firm’s latest hedge fund investor study shows that one third of investors plan to commit between $125bn and $195bn combined to the asset class. Of these, nearly half will look into putting their money in funds of hedge funds (FoHFs) and more than half of the surveyed FoHFs are looking for new investments too.

The study found other interesting pieces of information on what investors are planning to do in the next 12 motnhs: a third of public pension funds will look into making extra allocations into hedge funds (half of which in FoHFs) and the same goes for two third of private sector pension funds. Europe-based investors have the greatest appetite for new commitments, says the study; 45% are seeking new opportunities,compared to 29% of North American, and 32% of Asia and Rest of World-based investors.

Of those investors who plan to invest in hedge funds, half may prefer North America-based managers; a majority will look into long/short equity strategies; most also anticipate including an allocation to one or more single-manager funds; and 19% are looking to start a managed account.

New and small managers may be back in favour: nearly a third said they are more open to emerging managers than a year ago; but nearly two third will focus on managers who have a track record of at least three years; and more than a third will consider vehicles which manage less than $100m.

The full Preqin report can be accessed here: Source


Hedge funds took in $8.1bn in May, bringing YTD inflows to $75bn. However, the volatile markets of 2011 have still taken their toll and total industry assets remain unchanged at $1.79tln recently reported TrimTabs Investment Research and BarclayHedge. HFN said on Monday that estimates for asset flows following the June -0.99% performance drop saw an increase of $6.4bn in the rate of redemptions, outpacing allocations for the first time in a year. Meanwhile, Hedge fund flows as measured by the GlobeOp Capital Movement Index were negative 0.2% in July.

B. Gravrand

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. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  3. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully

  4. Investing - Hedge funds hook shipping stocks grappling for recovery, Small cap hedge funds offer alternative for cannabis investing, Top stock-picking hedge funds love gaming, health care and media shares, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter[more]

    Hedge funds hook shipping stocks grappling for recovery From Hellenicshippingnews.com: Shipping stocks may still be in the doldrums in the view of many investors, but hedge funds have bet at least $675 million on signs of renewed buoyancy in the industry. Hedge funds made initial f

  5. Outlook - Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil, Quadratic Capital says markets to remain turbulent for some time[more]

    Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil From CNBC.com: While a lot of attention has been paid to retail volatility products that contributed to the recent sell-off, those securities are "just the tip of the iceberg," Eddie Perkin, chief equity i