Updated with correction
A survey of Greenwich Roundtable members showed that despite liquidity concerns, just 22% lowered their overall allocation to hedge funds.
The survey, conducted jointly by the hedge fund research group and Quinnipiac University, also showed that another 25% decreased their long-short equity hedge fund investments, about 23% increased allocation to distressed debt and global macro hedge fund, and one-third intend to increase investments in global macro and commodity trading adviser strategies.
About two-thirds of respondents had recently increased the amount of cash in their portfolios, and 25% said hedge fund managers redemption restrictions and liquidity issues impacted their recent portfolio reconstruction.
Investors are obsessed with liquidity and the liquidity of their hedge fund investments. Cash is now king and even good hedge funds are getting redemption (requests), said Matthew OConnor, interim dean of the school of business, professor of finance and head of the Alternative Investments Institute at Quinnipiac University, in a report about the survey results.
About 35% of 260 Greenwich Roundtable members responded to the survey, conducted Oct. 6-24. Of the respondents, about 75% were institutional investors and hedge fund of funds.