The hedge fund industry has struggled through the market crisis of 2008-2009 and then a subsequent tough fundraising environment. Now, it finally looks like there’s some light at the end of the tunnel, as greater liquidity and transparency of funds has boosted investor confidence … and new capital is flowing back into the asset class.
That’s the word from Preqin, an independent research firm that focuses on alternative assets, in their 2011 Global Hedge Fund Investor Review. Their report reveals increasing investor confidence and satisfaction, and new growth expected, particularly from large institutional investors. The new capital will come from both investments put on hold during the crisis, and an increasing allocation to alternatives.
The welcome mat is out for new hedge fund managers, too. The majority of respondents to the Preqin study are willing to consider new investment proposals to augment their existing relationships with hedge funds.
Large inflows are expected in 2011 from institutional investors. 35% of those surveyed by preqin said they planned to increase the amount of capital they would be investing in hedge funds over the next 12 months. And among hedge fund strategies, global macro and distressed investment top the list of where investors see the potential for the best returns in 2011.
Other highlights in the Preqin Global Hedge Fund Investor Review include:
– Profiles of 1,000 key institutional investors arranged into 23 key regions from around the world
– Fund preferences by strategy and geography, key financial information, direct contact details for key personnel, sample investments
– Analysis and league tables for investors from each region, and in each of the ten most important hedge fund strategies with listings for active investors
– Analysis and listings for investors looking to allocate to UCITS or managed account vehicles
What about you? Are you optimistic about an influx of new hedge fund investment and hedge fund managers launching new funds in 2001? Where do you see those funds flowing? Add your comments below.