Mon, Apr 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Preqin survey - Institutional investors favor direct investments over FoHFs

Thursday, July 15, 2010
Opalesque Industry Updates - A Preqin survey of 50 institutional investors in hedge funds reveals that investors are re-evaluating their fund of hedge funds investment strategies and seeking to commit to single manager funds. 64% of respondents made their first hedge fund investment through a fund of hedge funds, but just 36% of these investors continue to pursue investments in such funds.

Investors surveyed included public and private sector pension funds, asset managers, insurance companies, banks, foundations, family offices and endowments. Respondents were from all regions. They were asked about their current hedge fund portfolios, investment strategies and interest in both funds of funds and direct investment in hedge funds.

Key Findings include:

  • 80% of respondents that have moved away from funds of hedge funds did so in 2008 or after.
  • 64% of respondents entered the asset class through fund of funds investments, but only 36% of these continue to invest solely through funds of hedge funds.
  • 36% of respondents that currently invest solely in funds of hedge funds plan to move towards direct hedge funds in the future.
  • 60% of respondents cited the extra layer of fees as the main reason they moved away from funds of hedge funds.
  • Greater control over their investments (54%) and more in-house resources (13%) were other reasons cited for the move into direct investment.
  • Public pension funds still invest heavily in funds of funds, with two thirds of public pension funds only investing through funds of hedge funds.
  • Endowments and insurance companies are the largest investors in direct funds, with 66% and 50% respectively only investing in hedge funds directly.

Corporate website: www.preqin.com

- FG

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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner