Sat, Jul 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

80% of investors are considering investing with new hedge fund managers over next 12 months says Preqin

Friday, November 11, 2011
Opalesque Industry Update - Hedge Fund Managers Set for Windfall

Only 20% of hedge fund investors plan to focus solely on maintaining existing relationships with managers over the next 12 months.

Hedge fund managers will be able to access new capital sources over the next 12 months as 80% of investors are at least considering investing with new managers, the latest Preqin research reveals.

Furthermore, 38% of investors are planning to increase the amount of capital they invest in hedge funds over the coming 12 months, meaning capital inflows are likely to increase throughout the industry.

In a study conducted for the 2012 Preqin Hedge Fund Investor Review, 10% of investors stated that they plan to invest only with new managers in the next year, while 49% intend to seek new relationships alongside maintaining those they already have. An additional 21% are looking at new proposals opportunistically.

The study found:

Just 9% of investors plan to reduce the amount of capital they invest in hedge funds during 2012.

40% of investors were dissatisfied with returns produced by their hedge fund investments in 2011.

One-fifth stated that they had more confidence in hedge funds now than they did in 2010, while 66% stated that they felt the same level of confidence.

38% of investors are seeking long/short equity investments, making it the most popular strategy.

26% are seeking global macro hedge funds.

79% intend to invest directly in hedge funds, while the proportion of investors planning to invest in commingled funds of hedge funds has fallen significantly in the past 12 months from 42% to 24%.

15% of institutions looking to make investments in the next 12 months prefer their capital to be held in separately managed accounts.

Firm track record is the most important criterion for an investor when choosing a fund manager, followed by fund performance and strategy.

Click here to see the report: Source

Although institutional confidence has been dented as a result of poor returns towards the end of this year, the outlook for next year remains positive. Hedge fund managers can expect a large influx of capital from institutional sources over the next 12 months, and assets could potentially reach the pre-crisis watermark of $2.6 trillion.

While we expect demand for further liquidity and transparency to continue, with increasing numbers of investors opting for separately managed accounts, traditional fund structures are likely to remain at the forefront of investment portfolios.

(press release)

About Preqin:
Preqin is the leading source of information for the alternative assets industry, providing data and analysis via online databases, publications and bespoke data requests. Preqin has built a reputation in the alternative assets industry for providing the most comprehensive and extensive information possible. Leading alternative assets professionals from around the world rely on Preqin‟s services daily, and its data and statistics are regularly quoted by the financial press. www.preqin.com

BG

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: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner