Nearly a third of institutional investors expect to increase their allocations to the hedge fund sector, over the next 12 months, the August edition of Preqin's Hedge Fund Investor Spotlight
newsletter reveals.
A growing number of institutional investors are now opting to invest directly into hedge funds instead of allocating to the space via funds of hedge funds.
Hedge fund managers have no doubt learnt some tough lessons over the past two years, not least the need for a robust and efficient back office.
The July edition of Preqin's Hedge Fund Investor Spotlight reveals how institutional investors have increasingly opted to allocate directly to the hedge fund space, rather than via a fund of hedge
fund vehicle.
With the countdown to UCITS IV implementation now well underway, funds industry professionals must assess the changes, growing complexity of the market and consider the business options ahead.
The Credit Suisse/Tremont Hedge Fund Broad Index gained 1.24% in April with nine out of 10 hedge fund strategies posting positive returns.
The emergence of new fund of hedge fund (FoHF) vehicles suggests that interest in the sector is returning after a slow 2009, according to the May edition of Preqin's Hedge Fund Investor
Spotlight.
Positive expectations of the future of Ucits hedge funds and fund of hedge funds has meant that demand for such products is continuing to rise.
2009 was clearly a mixed year for the hedge fund industry as the latest PerTrac Hedge Fund Database Study reveals that total industry assets grew by 5.5% despite a fall in the number of hedge funds
and fund of hedge fund by 8.6%.
Research conducted by Preqin reveals that sovereign wealth funds' total assets has grown by 9% from $3.22trn to $3.51trn over the past year.