Monday, 30 November 2015
Last updated 2 days ago
May 6 2008 | 2:42pm ET
Hedge fund investors are feeling bearish, more wary of managers’ risk management measures, sitting on cash and expect to increase their allocations to emerging markets, according to a new survey.
The Deutsche Bank poll of 500 investor firms worldwide, representing nearly $1 trillion in hedge fund assets, found that 80% of are bearish and just 40% expect the global economy to pick up in 2009. Investors have also added risk management as major manager selection criterion, in addition to investment performance, and managers’ pedigrees.
Investors are also sitting on high cash levels and taking a “wait and see” attitude to hedge fund investing. However, 53% of investors holding cash now plan to eliminate their cash holdings over the next 12 months, suggesting a renewed focus to make allocations to hedge funds.
Also, the majority of investors surveyed plan to increase their allocations to emerging markets, with the Middle East as the predicted top performer amongst all regions. Hedge fund investors predict that macro, distressed, and equity volatility will be the top performing strategies for 2008.
“Hedge fund investors are cautiously poised, as shown by their increased focus on risk management and plans to allocate to strategies which are not sensitive to equity market risk,” said Maarten Nederlof, New York-based co-head of the Hedge Fund Capital Group at Deutsche Bank. “We also found that despite their overall bearish outlook on the economy, investors predicted more than $200 billion will flow into the industry.”
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…