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Benedicte Gravrand, Opalesque Geneva:

According to a Credit Suisse hedge fund survey, investors overall forecast a 3.5% increase in new inflows during 2017. They also said they are meeting better alignment of terms: more than half has at least one manager in their portfolio with a hurdle rate, and more than half managed to lower their management fees.

Credit Suisse, the Swiss bank, has just released its ninth annual Hedge Fund Investor Survey entitled "Shifting Tides," with responses from more than 320 institutional investors representing $1.3tln of hedge fund investments.

Their favourite strategy for 2017 is global macro-discretionary, followed by fixed income arbitrage/relative value, and emerging market equity. They are likely to pivot from broad based equity strategies to equity sector strategies, and might even include some allocation to quantitative strategies.

As in the previous survey, 87% of investors indicated that they would maintain or increase their hedge fund exposures in the coming year. But last year, only a third said their hedge fund portfolio had met or exceeded their expectations (down from 45% last year). Investors are now targeting annual returns of 7.2% for 2017.

There remains significant appetite for start-up funds, with slightly less than half of respondents reporting investing in a start-up fund l......................

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