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In the week ending 21 July, 2015, a study by Preqin showed that four out of five (79%) institutional investors invest in at least one alternative asset class. Private equity, hedge funds (51%) and real estate are the most targeted alternative asset classes, with the vast majority of investors having a positive or neutral view of each asset class. For investors in private equity and real estate, this stands at 95% and 94% respectively. Twenty percent of investors in hedge funds have a negative perception of the asset class.

Investors largely feel that their interests are aligned with those of fund managers in most asset classes. The exception is hedge funds however, with almost half stating that investor interests are not appropriately aligned with those of fund managers. There does seem to be movement towards more investor-friendly terms by hedge fund managers in response to these concerns, with 47% of respondents seeing fund terms becoming more investor friendly.

Investors target high returns from their private equity portfolios, while primarily using hedge funds for portfolio diversification, low correlation with other asset classes and reduced volatility.

Texas Employees Retirement System, Austin, plans to commit about $950m to private equity, hedge fund pacing for fiscal 2016; Malcolm Gladwell has lashed out at Yale University for what he says is exorbitant spending on hedge fund management fees; Minnesota State Board of Investment, St. Paul, returned 4.4% net of fees on its investments for the fiscal year ended June 30; and South Carolina Retirement System Investment Commission Director Michael Hitchcock said the pension fund’s worth falls as investment earnings don’t keep up.

Mohan Rajasooria is preparing to launch his own Asia hedge fund, Zaaba Capital; Meridian Capital Management has launched the Global Macro Hedge Fund in addition to its its existing repertoire of hedge funds; Morgan Stanley has launched a new fund, the......................

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