Institutional Investors

Investors split on hedge fund performance outlook, says Commonfund


A survey of 222 institutional investors whose combined assets were $239 billion found that 30% believed hedge funds will underperform an industry hedge fund index, while another 30% believe that hedge funds will outperform the index. The remaining 40% of investors expect hedge funds to match the index returns.

Despite such uncertainty, 28% of respondents said they would increase their allocations to hedge funds, which is up slightly from last year when it was 27%. The majority of investors (55%) plan to maintain the same allocation to hedge funds.

Overall, portfolios are expected to grow an average of