Hedge Fund Investors 2012

Hedge Fund Investors 2012

1/6 of Investors to Move their Money from Current Manager

One sixth of the current hedge fund investors who participated in a recent Barclay's survey are less than satisfied with their current manager and expect to move their money next year to a different manager. The expected large shift in assets illustrates the challenges that many hedge funds will have in preventing in convincing their investors that performance will be better in 2012 and that they should keep their money invested with their current manager.
Hedge fund investors are likely to move almost a sixth of their cash into the hands of different managers in 2012, a report on Friday showed, as firms in the $2 trillion sector grapple with winning back the confidence of clients hurt by losses in 2011.

The report, conducted by Barclays (BARC.L) Capital, expects investors will move around $300 billion of assets from one strategy to another, or between different managers in the same strategy, next year.

Investors will also put some $80 billion of new money into the industry, according to the report, titled 'The Money Trail'.

This would constitute the largest annual net flow of assets into hedge funds since the financial crisis, but is still less than half the $195 billion investors ploughed into the industry in 2007, the report showed. Source

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