Hedge fund managers are nearly equally divided about prospects for the hedge fund industry in the second half of 2016, showed survey data released by market tracker Preqin on Wednesday.
Of the 270 hedge fund executives surveyed in June, Preqin researchers found that 35% of respondents have a positive outlook for their industry for the last six months of the year, while an equal proportion expect the environment to be negative. The rest of respondents said they are neutral on the topic.
In terms of investment performance, respondents expect the median hedge fund return for 2016 to be 3%.
Slightly more than half — 52% — of those Preqin surveyed said hedge fund investors became more negative about hedge funds in the prior 12 months, while 35% said there had been no change and 13% thought investor attitudes were more positive.
Hedge fund managers were more divided about how difficult the fundraising environment was in the first six months of 2016: 39% of respondents said attracting assets was harder; 32% said there was no change; and 29% said it had been easier.
These factors contributed to 48% of hedge fund managers surveyed believing that hedge fund industry assets will drop in the latter half of this year. About 29% of managers said the aggregate asset level would not drop, while 23% think industry assets will rise.