Survey Projects Hedge Fund Assets Will Reach $2 Trillion
A Credit Suisse Group AG survey of 600 institutional investors worldwide cited in a BusinessWeek article projects that hedge fund assets may grow by 25% from $1.6 trillion to $2 trillion before the year is out. Asia-Pacific will likely be the biggest beneficiary among all geographies, with 61 percent of investors indicating they are increasing or considering raising their allocations to managers focused on the region, the survey said. Investors also indicated they are most likely to allocate to macro and event-driven funds.
Benjamin Happ, Hong Kong-based Asia-Pacific head of capital services in Credit Suisse’s prime services division was quoted in the BusinessWeek article as saying, “Some of the broad policy decisions, the country and supranational decisions, are weighing heavily on the investment horizon.” Since the financial crisis of 2008, during which time hedge funds lost 19 percent, the largest annual loss on record, Credit Suisse reports that 65 percent of investors are spending more time on due diligence investigations of hedge fund managers than they were before the financial crisis. On average, they are spending 5.9 months researching investments, which is a 20% increase since September 2008, BusinessWeek reports.
According to BusinessWeek:
Hedge fund managers are trying to lure back investors with promises to increase disclosure and cut fees in exchange for longer lockups, the survey said. Ninety-four percent of the investors said they are receiving more information from managers, according to the latest survey.
Globally, the average number of hedge fund holdings of investors has fallen 17 percent since September 2008 to 48 today….
Worldwide, investors’ initial investment in a fund averages $18 million, with long-term holdings of $33 million, the survey found.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Loading ...