Thu, Dec 8, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest