Institutional Investors

UK consultants keep the faith in hedge funds


Despite mixed returns last year the important UK consultants remain convinced of the benefits of hedge funds for pension fund clients.

According to Peter Hill of Hewitt Associates, many clients started to postpone plans for hedge fund investing as markets declined last year. But nevertheless he believes that they will push ahead, given the attractive prospects over the medium to long term.

Craig Baker at Watson Wyatt also still believes in the abilities of talented hedge fund managers to generate good returns for pension funds but sees clients increasingly going direct: Watson Wyatt says mandates to single-manager hedge funds