Large Investors to Keep Injecting Money into Hedge Funds
Despite earnings near or less than market benchmarks, large investors will keep injecting money into hedge funds.
No
less than 97 percent of 284 institutional investors surveyed by Credit
Suisse said they plan to be "highly active" in making hedge fund
allocations during the second half of 2014. That's even more than the 85
percent who already made allocations in the first half of the year.
"The
money is coming from institutions which are smart money that understand
the risk inherent in both the stock and bond market right now," said
Brad Alford, chief investment officer of Alpha Capital Management, a
$200 million firm that invests in hedge fund-like mutual funds. "They
are rebalancing back into the less risky asset classes like hedge funds
that hedge."
The
Credit Suisse report echoes a survey of wealthy families by eVestment
that showed that hedge funds were the asset class with the greatest
expected increase in allocations over the next two years, beating out
private equity, traditional stocks and real estate.
Source: CNBC
