By Susan Barreto
For most investors, whether in hedge funds or not, the past two years have been like the roller-coaster ride from hell. Investors saw performance, portfolios, managers, sentiment and assets crashing down, with moments where an end did not seem in sight.
But despite all this, 65 institutional investors, with assets totalling nearly $1 trillion, made their hedge fund buying decisions public through InvestHedge's monthly mandate news summary. And while only $5 billion of confirmed new money was given to hedge funds and funds of funds in 2009, according to InvestHedge, there is $5.2 billion waiting to be allocated. Indeed, this month alone there is $2 billion in new mandates (see pages 16-18).
A number of factors constrained hedge fund investing in 2009: lack of liquidity and transparency; discussion on the justice of performance fees; or a reluctance to invest until the storm had calmed completely; and,...