Hedge funds expect more institutional clients

Date: Thursday, January 3, 2008
Author: Pensions & Investments

Institutional investors will account for an increasing percentage of hedge fund managers’ client base over the next three years, according to the Lipper Hedge Fund Survey; 64% of respondents estimated the number at 30%, while 38% of respondents estimated it at 50%. In addition, 16% of the 41 single hedge fund and fund-of-funds managers surveyed in early November think the biggest challenge in accepting more institutional investors will be compliance issues, while 13% see risk management issues as the top challenge.

Pension funds should allocate at least 11% of assets to hedge funds, according to 56% of managers surveyed.