Hedge Funds

Study: Investors think asset bloat hurts hedge fund returns


A Deutsche Bank survey of some 650 institutional and high-net-worth investors found that 67% of such accredited investors think the large influx of capital into hedge funds has depressed returns.

The study, which drew upon the views of family offices, insurance companies, pension plans, individuals and endowments, found that investors were expecting a return of between 6% and 8% for hedge funds in 2005, a number that is below historical norms. That said, the majority of participants indicated that they were planning to increase allocations to hedge funds in 2005.