Thu, Aug 11, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors even more bullish on hedge funds in 2022

Wednesday, February 16, 2022

Laxman Pai, Opalesque Asia:

70% of investors' hedge fund portfolios met or exceeded their target returns in 2021, said a study. Furthermore, hedge funds generated an alpha of 2.4%, which is above historical averages and marks the second consecutive year of positive alpha generation across the industry.

According to Barclays' study, 'Hedge Fund Outlook 2022', investors appear even more bullish across most hedge fund strategies than they were last year.

"Across our sample, they plan to allocate $265 million to hedge funds in 2022 on average. They plan to finance about 70% of these investments through redemptions of existing allocations. Overall, this will result in a net increase in their hedge fund exposure of about 3%," it said.

Private Banks are the most bullish with plans to allocate about $305 million and redeem only $65 million.

Such bullish sentiment bodes well for hedge funds seeking new clients. Investors said they planned to split allocations between new and existing relationships in 2022, with about 60% going to new relationships.

Barclays expects hedge funds will receive about $30-50 billion in net allocations in 2022, marking a growth of about 1% for the industry overall. "From a gross perspective, we expect investors to make allocations of $400-450 billion in 2022, which is more than the levels reached in the past couple of years," it added.

Where are the investment dollars flowing?

According ......................

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. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  2. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  3. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  4. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  5. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du