More than half 55% of 50 hedge fund and fund-of-funds managers surveyed said they managed more for institutional investors than they had three years ago. The recent survey by researcher Preqin Hedge also found institutions account for an average of 44.8% of a hedge funds total assets, while an average 60% of hedge fund-of-funds assets are from institutions.
The largest hedge funds have attracted the most institutional investment, researchers at London-based Preqin also found. Hedge funds managing $25 billion or more reported that institutional allocations accounted for an average of 75% of assets managed compared to 34.5% by funds managing under $500 million.
Among other results, firms established before 1990 reported an average 68% of assets coming from institutional clients; firms founded between 1991 and 1995, 75%; firms founded between 2001-2005, 32%; and 2006 to the present, 23.3%.