Thu, Jan 19, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

29% of institutional investors intend to increase hedge fund investment over the next 12 months - Preqin survey

Tuesday, August 10, 2010
Opalesque Industry Update - Preqin surveyed 50 global hedge fund investors from various institutions on their current hedge fund portfolios and their investment plans for the next 12 months.

Key findings include:

  • 29% of surveyed investors plan to allocate more capital to hedge funds over the next 12 months. 56% plan to invest the same amount in the asset class and just 15% plan to make cuts to their hedge fund portfolios.
  • 26% of institutional investors are below their target allocation to hedge funds. 64% of those surveyed are at their current targeted exposure and 10% are currently over-exposed to hedge funds.
  • 37% of institutional investors intend to increase the number of relationships they have with hedge fund managers over the next 12 months. 53% intend to maintain the current number of funds they are invested with and 10% plan to reduce the number of managers they invest with.
  • Over the longer term (three to five years), 46% of surveyed investors intend to increase their exposure to hedge funds.
  • 69% of investors feel that the hedge funds within their portfolios have either met or exceeded return expectations. This is a drop from 73% of investors in a similar survey conducted in 2009.

Comment:
“Despite a slight drop in investor satisfaction in hedge fund returns over the past 12 months, institutional investors are beginning to invest more capital in hedge funds in greater numbers than they were a year ago. With 29% of institutional investors planning to allocate more capital to hedge funds in the next 12 months and just 15% looking to make cuts, the balance of inflows into the asset class is positive. Furthermore, 37% of institutional investors are planning to add new funds to their portfolio in the next 12 months and are actively seeking relationships with new fund managers.

The long-term outlook for the asset class is even more positive, with 46% of investors planning to increase their exposure to hedge funds over the next three to five years. It is clear that institutional investors still believe hedge fund investments are a valuable part of their portfolios. Recovery in terms of asset flows into the industry has already begun and the Preqin survey suggests it is likely to increase steadily over the medium to long term”. Download the full report from Opalesque: Source

- 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. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  2. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

    From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

  4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee