- Advertisement -
- Advertisement -

Hedge Fund Returns Exceeded Institutional Investors’ Expectations in 2017

- Advertisement -

Stockholm (HedgeNordic) – Almost three quarters (74 percent) of institutional investors say that their hedge fund portfolios met or exceeded expectations in 2017, according to Credit Suisse´s Tenth Annual Global Hedge Fund Investor Survey. This is a significant increase from the previous year, when only 30 percent said they were happy with the returns generated by their allocations to hedge funds, HedgeWeek writes.

According to the survey, there will be continued strong appetite for equity-focused strategies in 2018. Investors indicate interest for a variety of strategies including emerging market equity, fundamental equity long/short, quantitative market neutral and equity long/short sector funds (healthcare, financials & TMT).

The survey also confirms the trend of flexible fee structures offered by hedge funds to end-investors. Two thirds (76 percent) of investors are taking advantage of fee discounts from new launches, reduced fees for longer lock.ups as well as sliding fee schedules based on fund AuM and large ticket discounts.

For the third straight year, institutional investors are increasing the target return expectations for their hedge fund portfolios, the survey reveals. The expected return for 2018 has been hiked to 8.5 percent from 7.3 percent a year earlier.

The overall sentiment towards the hedge fund industry is positive according to the survey as respondents are forecasting a 5.4 percent growth in assets under management during 2018.

When asked about future developments for the hedge fund industry that might occur this year, investors forecast a continued reallignment of fees/terms, increased volatility, hedge fund outperformance, a continued rise of artificial intelligence driven and cryptocurrency focused strategies and industry consollidation by number of funds,

Picture: (C) aboutpixel.de-jump-jonathan-spielbrink

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

Leveraging Opportunities in Credit Markets

Stockholm (HedgeNordic) – After several years of successful bond investing through a private investment company, Nicolai Wenckheim launched an alternative investment fund in March...

ATP’s Response to Changing Equity-Bond Correlations

Stockholm (HedgeNordic) – In 2022, the usual negative correlation between equities and bonds, essential for the construction of diversified portfolios, disappeared. This rare anomaly,...

Evolution in Hedge Fund Investing with LGT Collaboration

Stockholm (HedgeNordic) – Since Peter Ragnarsson assumed the role of Head of Alternatives at PRI Pensionsgaranti in 2015, the Swedish pension insurer has significantly...

Borea Expands Sustainability Focus with New Hire

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has expanded its management team with the hiring of Iselin Ahmer Solberg as a corporate...

Schroders Strengthens Nordic Client Team

Stockholm (HedgeNordic) – Schroders is expanding its client relationship capabilities in the Nordics with the appointment of Ludvig Löfving as a Client Director. He...

The Lynx Constellation Is Brightening Up

Stockholm (HedgeNordic) – Lynx Asset Management made headlines in late 2019 with the launch of its pure-play machine learning strategy, Constellation, as a standalone...

Allocator Interviews

Latest Articles

Man Institute Insights

Voices

Request for Proposal

- Advertisement -