Research by Preqin reveals that institutional investments now makes up 61% of all hedge fund assets, a 16% jump from 2008. A survey of 60 hedge funds responsible for $95 billion in assets, found moving from an asset class predominated by wealthy individuals and family offices to an institutionally focused industry had “fundamentally” changed the […]
The hedge fund industry has finally recouped the assets it lost during the height of the credit crunch and is back to 2008 levels, according to new data from Eurekahedge. Industry assets stand at US$1.63 trillion after the value of its investments rose by $18 billion (2.27%) and investors injected a net $10.2 billion in […]
All aboard! The hedge fund express is about to take off — or is it about plunge downhill? It’s actually been moving in both directions, fairly unpredictably for most of the year. The roller coaster ride in August was indicative of how hedge funds have performed for most of 2010, said Anthony Lawler, head of […]
Institutional investors around the world are pushing back against a hedge fund practice that isolates up to 10% of an investor’s assets, according to a survey. Credit Suisse’s Annual Hedge Fund Investor Survey, representing a combined US$1 trillion of funds under management, finds that institutional investors are challenging hedge fund managers over redemption fees and […]
The 130/30 strategy—which utilizes leverage by underweighting (shorting) poor performing stocks and overweighting undervalued stocks—is not new to institutional investors. Hedge funds have used it for years. However, in the aftermath of the global financial crisis, the lack of transparency inherent in hedge funds has made the strategy unpalatable for many institutional investors, who have […]
Hedge fund managers—no strangers to upheaval since the outset of the global financial crisis—have a new reality to contend with, according to a recent survey. Far from shying away from the alternative asset class, many institutional investors are looking to increase allocations to hedge funds, but they are dictating the terms and demanding change as […]
1. The true reason hedge funds performed so poorly in 2008 2008 was one of the worst years for equity markets, yet hedge funds did not provide the diversification benefit that was expected of them. What happened? Read more 2. Special report: Is SRI sustainable in a downturn? This package includes a compilation of stories […]
Hedge funds are often sold as a great diversifier to any asset mix due to their low correlation to traditional asset classes. 2008 was one of the worst years for equity markets, yet hedge funds did not provide the diversification benefit that was expected of them. What happened? First, the numbers. In 2008, the S&P500 […]
In the aftermath of the subprime mortgage meltdown in the U.S. came the news that certain fixed-income based hedge funds had sustained significant losses or in some cases collapsed. Now it seems that many pension funds are revisiting their allocation to this “asset class”—eager perhaps to “buy high, sell low” or fearing that the attraction […]