Monday, 30 March 2015
Last updated 5 min ago
Feb 19 2014 | 1:53pm ET
Hedge funds badly underperformed the broader markets last year, but that's OK with investors, according to a new survey.
In fact, investors plan to reward the hedge fund industry with record asset levels, even though they don't expect hedge funds to do any better this year than last, Deutsche Bank's annual alternative investments survey shows. Clients expect to add about $171 billion in new money this year which, combined with about $191 billion in performance gains, should push hedge funds past a major milestone.
"The hedge fund industry is predicted to reach a record $3 trillion by 2014 year-end, driven by significant inflows, most notably from institutional investors," Deutsche Bank prime brokerage co-head Barry Bausano said.
The poll contained some other surprises. Notably, investors were by-and-large pleased by what some considered sub-par returns last year. The average hedge fund rose less than 10% in 2013, compared to more than 30% for the Standard & Poor's 500 Index. But 80% of survey participants pronounced themselves "happy" with the lower returns. Sixty-three percent said they expect sub-10% returns again this year.
That isn't dissuading them, however: More than half of the institutional investors polled plan to raise their hedge fund allocations this year.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…