Investors seeking golden opportunities

Thu Feb 3, 2011

Institutional allocations hit pre-2008 levels with $22bn in confirmed 2010 search activity

By Susan Barreto

Hedge fund activity is back. Knowledge is greater, but caution (and excessive due diligence) seems to be the name of the game when allocating in the post-Madoff environment.

With $22 billion in search activity in 2010, it seems that the time from meeting to allocation seems to be increasing – so only $12 billion in deals got done according to InvestHedge’s annual round up of mandate activity.

That said, it is a three-fold increase on the completed activity of 2009. The lion’s share of the assets, some 63%, equivalent to $7.8 billion, was allocated directly with $4.5 billion going to funds of hedge funds. Brevan Howard picked up at least six public mandates in 2010, worth close to $500 million in assets.

It was not only in 2010 that saw most hedge fund managers finally seeing the benefits of the lower fee negotiation and...

ISSN: 2151-1845 / CDC10004H

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