Sun, Mar 1, 2015
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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie