Opalesque Industry Update - Preqin's latest survey of hedge fund investors finds that the proportion of institutions that feel their hedge fund
portfolios have met or exceeded their performance expectations has doubled in the past 12 months. In June 2016, just
21% of investors reported that their portfolios had reached expectations, but this has risen to 45% as of June 2017.
More than half of investors now have a positive or neutral view of the industry, and a third expect performance to
improve over the next 12 months. However, investor concerns have not entirely subsided: more than a third have
seen reduced confidence in the ability of hedge funds to meet their expectations over the past 12 months, and almost
half now say they intend to reduce their allocation to the asset class. Key Hedge Fund Investor Facts:
"Preqin's surveys of hedge fund investors in June 2016 found their concerns surrounding the performance of the industry had reached unprecedented levels, as four out of five reported that hedge funds had failed to meet their expectations over the preceding 12 months. A year later, this proportion has fallen considerably. Although the majority are still dissatisfied with the performance of their portfolios, a significant proportion have softened their stance in light of the consistent gains the industry has made in the past 12 months. However, despite a double-digit 12-month return, and an improvement in investors' outlook on industry performance over the next year, the long-term performance of hedge funds is still being questioned: seven out of 10 say that the asset class has failed to perform adequately over the past three years. This disappointment with returns over an extended period is having a significant impact on the industry. The proportion of hedge fund investors looking to reduce their exposure to the asset class is still growing, and now almost half of institutions are looking to reduce their allocations. Performance is cited as a key driver of this, and attendant concern over the fees they are being charged mean that hedge funds are still a tough sell for many investors." Figures based on the results of a survey of 108 institutional investors in hedge funds conducted by Preqin in June 2017 |
Industry Updates
Preqin: Investors pleased with hedge fund returns in H2 2017
Thursday, September 21, 2017
|
|