Susan Barreto, deputy editor,
Institutional investors had a bad year in 2008. The sharp
fall in equities eroded many of the assets in the portfolio
while hedge funds appeared to fail in delivering what they had
promised on the tin. On second glance, depending which hedge
funds were selected and how investors were invested, perhaps
the hedge fund investing argument still sticks given the
blood bath in the equity markets.
The rate at which institutional hedge fund capital was put
to work was challenged as never before as the size of
individual mandates shrunk to total millions, rather than
billions, of dollars. The heady pace of investing in funds of
hedge funds seems to have slowed significantly as it seems that
in 2008, at least, larger pension funds were tending to
allocate directly to hedge funds en masse for the first
Given the climate of fear following...