Updated Aug. 12, 2010
Some 29% of institutional investors plan to allocate more capital to hedge funds in the next 12 months, and 46% plan to increase their hedge fund allocation in the next three to five years, according to results of a survey of institutional investors released Tuesday by alternative investment research firm Preqin.
By comparison, 56% plan to keep their current allocation and 15% are looking to cut their hedge fund allocations in the next 12 months. Longer term, 43.9% of respondents intend to maintain their current allocation and 9.8% intend to decrease their allocations over the next three to five years, Amy Bensted, manager, hedge fund data stated in an e-mail response to inquiries.
Some 53% plan to keep the current number of funds, 37% plan to add funds to their portfolios and 10% intend to reduce the number of funds in the next 12 months.
Preqin interviewed 50 institutional investors that invest in hedge funds in June and July.