Hedge Funds

Survey predicts spike in institutional allocation to hedge funds


A new survey from management consultants Casey, Quirk & Acito and The Bank of New York estimates that the amount of money U.S. investors have poured into hedge funds will reach $300 billion within five years, with much of the money coming from funds of funds.

Five years ago hedge funds got most of their money from wealthy individuals, the survey found. But the survey also predicts that soon, more than 50% of annual net new flows into the hedge fund industry will come from institutions. The fastest growing source of institutional capital, however, is defined benefit plans, which