Investors Go Big on Hedge Fund Allocations

By Rachael Levy January 13, 2016

“Institutional Investor confidence in hedge funds also is steadily decreasing,” Preqin says. In 2013, 21% of investors said hedge funds met their expectations. In 2015, just 9% did. But investors don’t seem to be losing interest in hedge funds, says Chris Cutler, CEO at Manager Analysis Services, an investment consultant.

“While last year’s performance hurt on average, there is such dispersion in performance across hedge fund strategies that I don’t expect last year’s performance will have a material effect on the decisions of more sophisticated allocators,” Cutler says.