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Komfie Manalo, Opalesque Asia: Many investors have grown cautious allocating into the hedge funds space with a growing proportion looking to cut back on their investments in the near future, stated Preqin in its Hedge Fund Spotlight 2017.
"As markets respond to the unexpected events of 2016, the ramifications of which are far from clear, 2017 could be a time for hedge funds to show their worth to investors if they can continue to build on the solid returns of 2016," Preqin's Amy Bensted said.
Hedge funds delivered risk-adjusted basis over the long term
However, despite short-term concerns around performance, hedge funds have proved their worth in institutional investors' portfolios on a risk-adjusted basis over the long term. With 14,500 funds open to investment, it is more challenging than ever to find the right fund in terms of strategy, performance and fees. Therefore, intelligence that can help investors cut through the noise and find the funds that meet their needs may be the first step for institutions in creating portfolios of funds that can help them meet their long-term objectives.
Bensted said that the industry is in a period of change. Investor pressure on performance and fees has grown and there have been large-scale redemptions from hedge funds. In addition, the gap between new fund launches and fund liquidations has narrowed to just 25. "If outflows continue in 2017, we may contin...................... To view our full article Click here
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