Wed, Sep 30, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors turn to hedge funds for asset protection

Wednesday, September 18, 2019

Laxman Pai, Opalesque Asia:

Hedge fund investors are looking to the asset class to offer asset protection as they anticipate an equity market downturn, said Preqin Investor Update.

The report on alternative assets during H2 2019, said that despite the underwhelming 12-month performance, hedge funds' downside risk protection makes them an important tool for investors.

Almost half of the investors think the asset class fell short of performance expectations over the past 12 months, but a notable 42% of respondents believe the industry's performance will improve in the year to come.

Almost three-quarters of investors now believe equity markets are at a peak, and many are looking to hedge funds to help provide diversity and downside protection.

In the next 12 months, 77% of investors are seeking to maintain or increase their exposure to the industry, and more than half of respondents plan to rebalance their portfolios more defensively. In this regard, relative value and macro strategies are sought by the greatest proportion of investors.

Samuel McKenzie, Hedge Fund Analyst at Preqin said: "Although investors are not particularly satisfied with the performance of their hedge fund portfolios over the last 12 months, they are looking to the asset class to help protect their assets in the months ahead. Expectations of an equity market downturn have risen by more than 10 percentage points in the past six months alone, and two-thirds of investors are rebalanci......................

To view our full article Click here

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. Investing: Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says, Pandora tops world's best-performing market as hedge funds exit, What Bill Ackman is investing in now[more]

    Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says From Business Insider: Credit Suisse on Thursday trimmed its overweight rating for tech stocks, recommending investors be more selective with their sector picks. Crowding in tech giants and the stocks&#

  2. Investing: Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan, Here's what investors with $3.4tn are buying during covid, An energy trader seeks profit from batteries in European markets, Hedge fund ARCM to sell $200m of Premier Oil debt[more]

    Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker

  3. PE/VC: Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise, Aberdeen's Bonaccord teams up with CAZ to buy stakes in private markets managers, The role of private equity in economic recovery from Covid-19[more]

    Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise From Institutional Investor: New research suggests private-equity-owned firms respond differently to financial distress - and that the resulting performance "cannot be replicat

  4. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  5. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol