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From Kirsten Bischoff, Opalesque New York:
The tantalizing promise that institutional investors will swoop in momentarily and grant allocations has been dangled in front of hedge fund managers for the better part of a year. With the performance rally of July tempered by industry-wide net outflows (to the tune of $3.7bn according to BarclayHedge), and another large redemption notice date looming at the end of August, there is nothing managers would like to hear more than news that long-promised institutional assets will soon flow into hedge funds. On Tuesday, a survey of institutional investors published by research firm Preqin, offered such hope.
"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," said Amy Bensted, Manager of Hedge Fund Data at Preqin.
Typically, the research and due diligence procedures followed by these investors take upwards of a year, which would mean that managers still have a long wait in front of them. However, the portfolio re-evaluations that institutions have initiated after many took devastating hits in 2008 have included researching funds that may have previously flown under the radar, or been out of that investor's comfort zone.
"There's been a lot of window shopping going on for the last 6-12 months by institutions which has been to their advantage, I d...................... To view our full article Click here
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