Contrary to a number of recent articles about negative investor sentiment and hedge fund manager comments about how bad the economy is going to become, we believe that the hedge fund industry is poised for growth in the second half of 2012 and beyond. The 2012 Citi Prime Finance survey provides the foundation for this belief.
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The survey of asset managers, consultants and investors found that despite poor performance over the last year, assets allocated to hedge funds are expected to double over the next five years. The reason is simple, investor need alpha generators and right or wrong, they believe that hedge funds can and will provide alpha. Structures may change, strategies may evolve but nonetheless, hedge fund managers will provide alpha. The study provides solid insight into where the industry is headed. To learn more, click here to read the survey results.
Here on the front lines, we are hearing from institutional investors daily about their increased appetite for hedge funds. Next week in New York, we are running an investor-only program on Operational Due Diligence for Endowments and Foundations. The first in our Investor Ops Series offers investors a peer-to-peer learning environment to exchange ideas and gain insight on how to look at managers from the inside out. There are still a few spots left. To sign up for this program click here.