Opalesque Industry Update -
Hedge fund investors are keen to commit to the asset class, with more than half making two or more investments on average per
year, a Preqin study reveals. Just under one-third make between two and three new investments per year, while 17% make
between six and ten. The study also found that institutional investors can be a long-term and stable source of capital for hedge funds; over one fifth of investors are keen to keep capital invested in a fund for over five years and 16% state that this is the minimum time for which they will stay invested in a fund. The study also found:
33% of investors invest in a hedge fund for a minimum of six months to one year Please see the report for the full run down of findings: www.preqin.com/docs/newsletters/HF/Hedge_Fund_Spotlight_May_2012.pdf
Comment
Institutional investors are also good long-term sources of capital; almost half will keep their capital in a fund for more than three
years if the vehicle performs as projected. However, many investors have been disappointed by the returns from their hedge fund
investments over the past year and, as such, those managers with a strong track record and proof of solid returns are likely to be
the most successful in attracting institutional capital in the coming year.” BG |
Industry Updates
Preqin: 20% of institutional investors make an average of four or five investments in hedge funds per year
Friday, May 11, 2012
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