Hedge fund investor sentiment remains strong

Credit Suisse shines light on key trends

Hedge fund investor sentiment remains strong
Steve Randall

A poll of institutional investors globally has revealed strong sentiment regarding hedge fund investment.

Credit Suisse’s survey of 275 institutional investors representing $1.04 trillion in hedge fund investments asked about several key topics and trends in the sector.

It found that hedge funds saw the largest swing in net demand among the different asset classes and are on par as the top investment strategy of allocators going into the second half of the year.

Alternative investment vehicles are showing increased interest in addition to commingled accounts. Separately Managed Accounts/Funds of One, Co-Investments, Private Credit, and Longer Lock products are all favoured.

Equities also remain in favour (5 of the top 10 strategies) with interest for a variety of approaches, including Equity Long/Short Healthcare and both Fundamental & Quantitative Market Neutral.

"Investors continue to have increased appetite for hedge funds driven by a variety of factors, including more aligned fees and terms as well as the broader use of customized solutions and non-traditional vehicles, especially Managed Accounts and Co-Investments," said Joseph Gasparro, who leads Strategic Advisory and Content for Credit Suisse Capital Services.

North America witnessed the largest positive demand swing as the US economy and stock market continue their upward momentum in 2018.