08/09/2010 Author: Shannon Hawthorne

Nordic investors remain confident about hedge funds

Four out of ten Nordic hedge fund investors are planning to increase their allocations to the space over the next few months, according to a recent survey by Swedish bank SEB. 

The Nordic Hedge Fund Investor Survey revealed that 41% of Nordic investors intend to increase their hedge fund allocations in 2010, compared to only 14% who are planning to decrease their level of investment, and 46% who expect their allocations to remain unchanged. 

52% of investors surveyed currently allocate less than 10% of their overall portfolios to hedge funds, while a further 27% allocate between 10% and 20% to the sector. 

Global macro is expected to be the most popular strategy in 2010, with 43% of respondents expected to increase allocations, and 46% expecting the strategy to perform favourably this year. 

In contrast, the survey revealed a distinct lack of confidence in long/short equity (short bias), with no respondents expecting to allocate to the strategy, or anticipating a favourable performance in 2010.