Hedge Funds

Pension money to transform fund industry: Grail Partners


A recent whitepaper from Grail Partners argues that the expected influx of pension money will recast the hedge fund landscape to favor multistrategy and large direct funds over fund-of-fund intermediaries and single-strategy "trader" firms.

By 2010 pension allocations to hedge funds will grow by three times, according to the paper, while allocations from more traditional hedge fund investors - family offices, foundations and endowments - will level off.

This influx of more demanding clients will play to the strengths of multistrategy and large direct funds, which will be able to deliver higher returns, better control and better risk management,