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Matthias Knab, Opalesque: Institutional investors are predicting strong growth and attractive risk-adjusted returns in the hedge fund sector, and are planning to back expansion with increased allocations, new global research by Beacon Platform Inc. shows .
The study found almost all (93%) institutional investors questioned expect an increase in fundraising by hedge funds of 10% or more over the next three years with 14% predicting growth of more than 20%.
Beacon's research with pension funds, family offices, and insurance asset managers in the US, UK, Germany, Switzerland, France, Italy, Hong Kong, and Singapore found 91% expect the hedge fund industry to add more than $190 billion in assets this year with 26% expecting it to add between $250 billion and $500 billion.
Data from Hedge Fund Research earlier this year estimated total assets under management at hedge funds hit a record $4.6 trillion at the end of the first quarter this year. The research for Beacon, the open and cross-asset platform for portfolio analytics and risk management, shows all institutional investors questioned believe investing in hedge funds will be attractive in terms of risk-adjusted returns over the next five years, with 17% describing it as very attractive.
However, the surveyed group have some caveats and concerns about their hedge fund investments. A large majority (88%) of these investors agree that the quality of information and transparency in hedge funds needs to impro...................... To view our full article Click here
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