Hedge Funds

Investors optimistic about hedge fund capacity, study shows


Hedge fund investors, including institutions and funds of funds, believe the hedge fund industry will continue to expand at a rapid rate, a recent survey shows.

Conducted from May through July by the Nice, France-based EDHEC Risk and Asset Management Centre, the study found that more than 65% of its 183 respondents believe assets managed by hedge funds would grow at a minimum annual rate of 10% over the next five years. A large number of respondents predicted growth rates of between 10% and 15%.

Investors remained at odds when tackling the long-standing concern that hedge funds of funds