- Advertisement -
- Advertisement -

Related

Investors Plan to Allocate to Emerging Market Hedge Funds in 2018

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Hedge fund investors are planning to increase allocations to emerging markets in 2018, this according to JP Morgan Chase & Co’s latest institutional investor survey released Thursday.

According to the report, referenced by Bloomberg, about 33 percent of institutional investors plan to give more capital to emerging-market strategies this year. Approximately 20 percent expect to increase allocations to event-driven and quantitative-equity funds, while about 10 percent will devote less capital to fund of funds.

After years of underperformance by the hedge fund industry, investors are chasing returns in Asia. Hedge funds focused on emerging markets, particularly China and India, were the top-performing strategies last year, surging 20 percent and reaching a record of about $230 billion in assets under management in the fourth quarter, according to Hedge Fund Research.

In terms of regional exposure, 42 percent of investors expect to boost exposure to Europe while 18 percent plan to cut it in North America, according to the survey.

“Institutional investors have been under-allocated to both Europe and Asia and performance in both regions has been so strong that you can’t ignore it now,” said Alessandra Tocco, managing director and global head of JPMorgan’s Capital Advisory Group. “We’re also seeing more and more fund launches in China, as the markets continue opening up to outside investors.”
Most investors surveyed by JPMorgan Chase plan to maintain their overall hedge fund exposure at current levels, which tallied responses from 251 institutional investors with about $600 billion allocated to hedge funds at the end of 2017.
Picture (c): cosma-shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

Machine Learning Helps Lynx Constellation in Tough Trend Markets

Lynx Asset Management is best known for its flagship trend-following strategy, the Lynx Program, which celebrated its 25th anniversary this year. In late 2019,...

Rising Adoption of Quantitative Investment Strategies Among Nordic Investors

From a high-level perspective, there is a clear trend of increasing adoption of quantitative investment strategies (QIS) among Nordic institutional investors, either through the...

EU Plans Stress Test for Hedge Funds and Non-Bank Firms

European regulators are planning a stress test to identify vulnerabilities beyond the traditional banking sector, focusing on less regulated entities such as hedge funds,...

ALCUR Fonder Continues Hiring Spree

Following two earlier additions this year, ALCUR Fonder continues to expand its portfolio management team at a notable pace. The Stockholm-based hedge fund boutique...

Nordic Private Markets Modernize with Data-Centric Trade Lifecycle Automation

By Anders Stengaard Jensen at Indus Valley Partner: In recent years, asset managers in Nordic countries have accelerated efforts to modernize trade operations, particularly...

Norwegian Hedge Fund Industry Sees Major Boost with New Launch

The Swedish and Danish hedge fund industries remain closely matched in size, with Denmark recently edging ahead of Sweden. While still less than half...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.