Opalesque Industry Update - Preqin's latest survey of hedge fund managers* finds that they are adopting a bearish attitude in the second half of
2017, despite indications that fundraising and performance environments may be improving. Net inflows to hedge
funds totalled $25bn in H1 2017, following five consecutive quarters of outflows. At the same time, the industry
recorded its highest H1 performance since 2009, and two-thirds of fund managers met or exceeded their returns
objectives over the preceding 12 months. However, fund managers do not feel optimistic about the months ahead:
69% predict that net asset flows will be flat or negative in the second half of the year, and more than a third believe
that investor sentiment is more negative now than it was 12 months ago. Key Hedge Fund Manager Outlook Facts:
Amy Bensted, Head of Hedge Fund Products: "Following net outflows from the hedge fund industry of more than $100bn in 2016, the first half of 2017 has seen two consecutive quarters of capital inflows. This may indicate that investor sentiment toward the asset class is becoming more positive, perhaps in response to the improved performance environment over the past 12 months. However, fund managers do not seem to believe that this will benefit them in the longer term, and their judgement of investor sentiment is negative overall. It is particularly notable that over a third of managers gauge that investor sentiment is worse than in June 2016 - an historic low-point for hedge fund investor confidence. It remains to be seen in the remainder of the year if fund managers will be proved right, or if investor sentiment will continue to warm." |
Industry Updates
Hedge fund managers remain cautious as net asset flows turn positive
Friday, August 25, 2017
|
|