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A recent poll of hedge funder investors conducted by Preqin for the 2012 Preqin Hedge Fund Investor Review found that 38% of investors planned on putting more money into hedge funds next year. [via FINalternatives] Only 9% said they planned on cutting back.The Preqin survey notes that total assets under management for hedge funds could reach $2.6 million trillion — a level that hasn’t been seen since before the financial crisis.
In addition, 80% of investors are thinking about investing with a new portfolio manager — while some of that could be investors switching funds, 49% of those polled said they were planning on staying with their current hedge fund while looking for another fund to invest their money.
This should be very good news for hedge fund managers, who’ve seen a pretty bad year in terms of returns. In September, Bank of America’s Hedge Fund Monitor noted that 3Q11 was the worst quarter for hedge fund returns since the 2008 financial crisis.
Some other interesting stats from the survey, which polled 64 investors:
- 38% chose long/short equity as their preferred investment style, that was followed by global macro, which was favoured by 26%.
- 40% of investors were unhappy with 2011 returns.
- 79% planned on investing solely in hedge funds, while 24% planned on investing in fund of funds.