Citi tracks $1 trillion in new hedge fund capital


Hedge fund assets could more than double by 2016 as $1 trillion in new capital could be directed to current hedge fund strategies as hedge fund managers increasingly compete with traditional asset managers for up to $2 trillion in regulated alternative and long-only products, according to Citi’s US Business Advisory team.

“We see a second wave of institutional allocations to hedge fund strategies, as well as new allocations to long-only strategies managed by hedge fund firms,” said Sandy Kaul, US head of business advisory services at Citi Prime Finance.

The first wave of institutional allocations to alternative investments