About 53% of institutional investors will maintain their hedge fund allocations at current levels going into 2012, but 38% said they intend to increase their hedge fund investments in the coming year, according to data released Friday by researcher Preqin.
Just 9% of 1,000 institutional investors Preqin interviewed in the third and fourth quarter said they intend to reduce their overall hedge fund portfolios next year, according to Preqin's report, “Institutional Investor Outlook for Hedge Funds in 2012.”
Ninety percent of institutions interviewed said they will consider investing in new hedge fund while maintaining their existing investments. The remaining 10% said they will not add new hedge fund relationships in 2012.
Just over half of survey respondents said they invest with U.S.-domiciled hedge fund managers; 27% said they invest in European-based hedge funds; 14% invest in Asian-based funds; the balance invest in hedge funds based in Latin America, Africa and the Middle East, according to the Preqin report.