Martin Phipps, head of alternative distribution,
Gartmore Investment Management
At the end of 2003, according to a 2004 report by Casey
Quirk & Associates, US institutional investment in hedge
funds stood at around $66 billion. Since then, according to an
updated report published in October 2006, the estimated assets
from this segment of the market have more than doubled, to
around $148 billion.
While this is an extraordinary growth rate, the figures come
as no surprise. The last few years have seen significant
institutional investment from a number of major plans including
General Motors, Pennsylvania State Retirement System and Texas
Teachers in the US, while in Europe ABP and MN Services, as
well as the UK Royal Mail pension plan, have led the way.
But this is just the tip of the iceberg. The report
estimates that institutions worldwide have $361 billion
invested in hedge funds, and that this figure will...