Hedge Fund Inflows 2011
Survey Says: Hedge Fund Inflows to Quadruple in 2011
While hedge fund returns in February were nothing to write home about, hedge funds do have some good news coming. According to a recent survey, hedge fund inflows are expected to quadruple this year. If that is true, hedge fund total assets will balloon to $2.5 trillion by the year's end.
Part of the reason for the predicted increase in both inflows and assets is because 72% of pension fund executives who participated in the survey and more than half of their consultants intend to increase the size of their internal hedge fund teams in 2011. About 82% of investment consultants said they expect that their institutional clients will increase their hedge fund allocations this year.
Deutsche Bank's survey of 528 hedge funds, funds of funds, consultants, sovereign wealth funds, family offices and institutional investors, conducted in January, also found that all investors intend to reduce their cash holdings by $29 billion in the first half of the year; 75% of investors said they expect to have reduced their cash allocation to below 5% of total assets by June 30. Source
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