- Advertisement -
- Advertisement -

Related

Investors Plan to Allocate to Emerging Market Hedge Funds in 2018

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

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

RFP: UK Investor Targets Liquid Alternatives Strategy

A large institutional investor from the UK is considering an initial allocation of $20 million to a liquid alternatives strategy, with the potential to...

AP3’s Tactical Layer: A New Dimension of Diversification

Diversification is often discussed in terms of broad asset allocation. For Jonas Thulin, the CIO of the Third Swedish National Pension Fund (AP3), diversification...

Diversifying with Gold and Silver: Why Miners Amplify Opportunity

In the institutional investor’s world, diversification is not a slogan but an ongoing pursuit. While new strategies may come and go, some diversifiers have...

SilverDome One: Building Resilience in a Correlated World

In early 2023, two Swedes who had spent six years working together at one of the world’s largest sovereign wealth funds, the Abu Dhabi...

Slimmer Nordic Lineup Still Delivers at HFM Awards

Despite the Nordic region featuring a slimmer lineup of nominees at this year’s HFM European Performance Awards compared to previous years, three Nordic managers...

More Equities, Less Diversification for Finnish Pension System

In an effort to safeguard the long-term sustainability of Finland’s pension system amid demographic pressures, new rules for private-sector earnings-related pensions are set to...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

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.