Tue, May 23, 2017
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. Opalesque Exclusive: Time to invest in robotics? (part 1)[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The London-based, Swiss-born manager of the RoboCap UCITS Fund, talks to Opalesque about investing

  2. Investing - Hedge funds have been selling big winners this year, Hedge funds are betting $1 billion that Snapchat shares are going to drop, Here are the biggest bets made by top hedge funds in the first quarter[more]

    Hedge funds have been selling big winners this year From CNBC.com: Hedge fund managers' most popular stock to start the year has been a familiar name that is falling short in terms of performance, while the least popular companies all have been crushing the market. Procter & Gamble

  3. Investing - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  4. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  5. Opalesque Roundtable: Rise of high-frequency trading in Europe a challenge for traditional asset managers[more]

    Komfie Manalo, Opalesque Asia: The rise of high-frequency trading in Europe, dominating over 80% of the market, has become a challenge for traditional asset managers especially when it comes to risk management, said Philippe Malaise, chairman of advisory firm