Institutional Investors Still Interested in Hedge Funds

According to information from the Preqin Global Institutional Review (by way of an Albourne Village post), institutional investors plan to continue allocating capital to hedge funds. A total of 46.6 percent still have a positive long-term view of hedge funds, while 67.8 percent have an unfilled long-term target allocation to hedge funds. A total of 75 percent reported that while hedge fund returns had fallen short of original expectations, 53 percent were satisfied with returns (compared to the market in general, I assume).

Of interest in the post was the comment that while institutional investors were delaying making new investments with hedge funds, few were redeeming their original investments. Whether this means redemption requests will slow down, or whether the speculation about redemption requests driving the recent sell-offs were overblown (by many, including myself), is unknown.

Comments

[raytayzmd:]

...perhaps one of the benefits of the curent crisis will be companies like Preqin going out of business -- no longer will anyonel pay $500 for 400 pages of data that could be gleaned from the internet for free

2008 Dec 03 10:14 AM