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Hedge Fund Institutional Investors in Focus

Date: Thursday, October 4, 2012
Author: Nigel Someck, ProHedge

Institutional investors are playing a key role in shaping the future of the hedge fund industry. PROHEDGE takes a look at a 2012 Preqin report on global hedge fund investors; their opinions, behaviours and key trends for 2012.

The report is derived from data stored on the Preqin Hedge Fund Investor Profiles database of over 3,400 institutional investors.

Hedge funds are seen as liquid investments and institutional investors will typically allocate a certain amount of capital to alternative investments to diversify their portfolios. Over time they will continually add funds, developing a multi-layered fund investment programme. Over 59% said that they would invest in between 1-3 new funds every year, which means there are a lot of new mandates up for grabs. Investors will typically take between 6-18 months to decide where to allocate their capital.