Institutional Appetite For Hedge Funds

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Following the onset of the financial crisis, the hedge fund industry has experienced challenging conditions over the past two years suffering from outflows and poor performance.   However, despite the challenges, the institutional investors are quite optimistic about their fundraising horizon.

Recently conducted research survey by Preqin undertook a survey of 50 leading institutional investors from around the world in order to ascertain their hedge fund investment plans for the coming 12 months.

According to survey, almost a third of institutional investors plan to boost their hedge fund investments over the next 12 months, while less than half that number plan to cut their hedge fund exposure.  

In addition, more than two-thirds of institutional investors say they are happy with the returns produced by their hedge fund portfolios.   A fair number of institutions still have money waiting on the sidelines, with a quarter telling Preqin that they have not reached their current hedge fund targets.

According to Preqin, the results of the survey indicate that institutional support for hedge funds is set to increase modestly in the coming year, with longer term plans pointing to a more significant increase in commitment levels.

Anna Timone (195 Posts)

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