Dear Fund Director,
According Preqin research, the institutional investors are less willing to invest in Hedge Funds in the coming 12 months. The respondends is a worldwide representation of institutional investors including managers of pension plans, endowments, foundations, asset management companies, insurance companies, banks and familiy offices among others.
This is the natural response to an increasing discontent with regards to the performance achieved by this asset class during the last months, which indeed it reaches its historical peak of having fallen short of investor’s expectations.
It is also interesting to analyse the disparity of opinion among the different strategies within the Hedge Fund class.
Taking all these data into account, I would suggest to follow up during the coming months the inflows and outflows of those funds under mandate which can be following one of the less liked strategies and to improve communication and transparency with existing clients in order to ensure the Assets under Management don’t suffer.
The Indeep Fund Director