2012 Investor Outlook: Huge disparities, no shift to small funds
By Lawrence Delevingne
Wed Jan 18, 2012
Citi Private Bank, FRM, Liongate, Man Investments, Morgan Creek, Neuberger Berman, PAAMCO, Private Advisors, Silver Creek and others speak out about their 2012 investment plans.
Hedge fund investors entered 2012 generally averse to
directional, long-biased strategies in favor of shorter term,
specific investment opportunities, according to recent
interviews conducted by AR.
As they plan their 2012 allocations, pension consultants and
funds of funds predict continued market volatility, high
correlations among securities and general uncertainty resulting
from assorted macroeconomic factors. But they disagree wildly
about which hedge fund strategies will fare best in such an
With the exception of FRM, almost no one appears to be
shifting their focus to smaller managers, despite the common
talking point that some hedge funds had gotten too large for
their own good, with their assets hindering their performance
in 2011. Many investors already allocate to smaller managers
and did not indicate any plans to shrink that exposure, but
their disinterest in expanding it means smaller funds are
likely to continue struggling to raise capital. For some
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