DB Says Hedge Fund Net Inflows Tripling in 2014
According to annual research released by Deutsche Bank AG, one of the world's leading financial service providers, investors can almost triple the amount of capital they put into hedge funds in 2014, increasing industry assets to a record.
Hedge funds may attract $171 billion of net inflows and generate $191 billion in performance-related gains, according to 413 investors globally with $1.8 trillion of industry assets polled by the German bank in December. The combined effect will help boost assets by 14 percent to $3 trillion by year-end, the survey showed. Last year, the industry drew $63.7 billion of net deposits, according to Hedge Fund Research Inc.
The increase in allocations predicted would be the largest into hedge funds since 2007, based on data from Chicago-based HFR. The optimism follows the best industry return in three years and the growing trend of investors folding hedge funds into their stock or fixed-income allocations, the survey said.
“With the majority of investors happy with hedge-fund performance, we expect institutional investors to further strengthen their commitment to hedge funds,” Anita Nemes, global head of the Deutsche Bank’s hedge-fund capital group, said in an e-mailed statement.Source: Bloomberg