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Laxman Pai, Opalesque Asia: As a large portion of institutional investor allocators are finding that their investments in the alternative vehicles are meeting or exceeding expectations, demand for hedge funds is on the rise, said a survey.
According to the 2021 Hedge Fund Investor Survey by Credit Suisse, hedge funds are favored asset class to enhance the traditional 60 / 40 model.
70% of investors plan to make changes to their portfolio in 2021 due to the current environment of lower bond yields.
"As investors look to plug their current return gap, they indicated that hedge funds were their favored asset class to enhance the current 60 / 40 model, followed by high-yield credit, equities, and private credit," revealed the survey which polled over 200 institutional investors globally representing $800 billion in hedge fund investments.
53% of allocators invest in private markets equity through hedge funds, with family offices and endowments & foundations the most active. There are multiple drivers behind the rise in private markets, including an ample supply of pre-IPO companies and PIPE transactions, access, knowledge, and return potential.
61% of allocations over the past 12-18 months were directed to non-traditional structures, principally custom offerings (co-investments and managed accounts), driven by investors' desire to tailor fit specific investment objectives. This shift shows no signs of abating, with investors indicating the portion will...................... To view our full article Click here
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