Sat, Apr 19, 2014
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   |   
Banner
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: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably