Home / Hedge fund growth to favour multi-strategy products

Hedge fund growth to favour multi-strategy products

Hedge funds should see good fund flows in 2015, although macro and managed-futures strategies are likely to lag behind multi-strategy funds as preferred options for institutional investors, according to a report by eVestment.

The report, (view here) says that, barring an unexpected global or financial event, global flows into hedge funds will be between US$90-110 billion, which will keep the industry above the US$3 trillion milestone of assets under management that it passed last year.

eVestment predicts further flows into equity strategies, although they are likely to be lower than last year’s 8.6 per cent growth rate. Favoured strategies are event and activist funds.

  • In the fixed income space, there will also be a further move out the risk curve, with investors favouring distressed debt and special situations.

    With multi-strategy funds, the report says that their diversity makes them “a natural preference for traditional dollars rotating into the hedge fund industry and allocations at the rate seen in 2014 will likely continue”.

    The drivers of the growth for hedge funds are concerns about equity market valuations, especially as the US market has risen about 50 per cent in two years, and continued low interest rates.

    Investor Strategy News


    Related
    Perpetual hands front office to State Street’s Charles River

    Perpetual will use Charles River Development’s Investment Management Solution for its front-office operations as it prepares for an “evolving investment management landscape”.

    Lachlan Maddock | 27th Mar 2024 | More
    How Trump’s (potential) second innings could kickstart inflation

    A second Trump presidency would see a new era of American economic protectionism, according to Allspring, sending inflation higher and global growth lower. And that’s without factoring in potential threats from China and Iran.

    Staff Writer | 27th Mar 2024 | More
    Why there’s more to all-time highs than just hype

    It’s not just FOMO. Truly innovative business models are helping push stocks higher, says Capital Group, and for some of them there’s a lot more growth to come.

    Lachlan Maddock | 27th Mar 2024 | More
    Popular