Pension Funds Responsible For Boosting Hedge Fund Inflows

Sep 14 2006 | 12:00am ET

Pension funds were the biggest investors in alternatives last year, responsible for nearly one-third of inflows into the sector. A new report from Watson Wyatt shows alternatives adding some $250 billion in 2005, a 20% increase in assets to $1.26 trillion. Of the increase, pension funds accounted for $77 billion, with $62 billion of that going into hedge funds.

Pensions beat out high net-worth individuals as the largest investor group in alternatives in 2005. Mutual funds, insurance companies and foundations and endowments were third, fourth and fifth, respectively.

Among all investors, funds of hedge funds were the more popular destination for cash, taking in $85 billion. Real estate attracted $59 billion, and private equity funds of funds added $42 billion.
 
 


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note