Preqin: 68% below hedge fund target

More than two-thirds of the world’s institutional investors have not reached their target hedge fund allocation, according to new survey data from Preqin Hedge.

The 68% of investors surveyed that still have an unfilled target allocation likely will continue to invest in hedge funds, predicted Preqin researchers in the firm’s new report, “Overview of the Global Hedge Fund Institutional Universe.”

While 11% of respondents said they were unlikely to invest in hedge funds in the next 12 months, 21% said they were at or close to their target allocations but would continue to invest to maintain their allocation or opportunistically.

In the report, Preqin researchers said their analysis identified 160 investors that are “poised to make their first investments in hedge funds in the next 12-18 months.” They did not name any of the potential investors.

Preqin’s report is based on its survey of 2,023 institutional investors worldwide, conducted from August through October this year, and analysis of its institutional investor database.