Team Hedge Fund

More Institutional Investments in Funds

While I believe long-term this may shift back to a more 50/50 split institutional fund investors now make up over 60% of all hedge fund assets, while more retail individual HNW investors make up around 40% of the capital now within hedge funds. Here is the article discussing this development:

Hedge fund managers’ client base has become more institutional than retail over the past year – leading to an “insitutionalisation” of the industry, International Asset Management said.
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In an interview with Global Pensions, the chief executive of the fund of hedge fund firm, Morten Spenner, said around 55% of assets are now managed by institutions – up from about 40% before the crisis.

He said the tilt in assets was triggered by an exodus by retail and high-net-worth clients from the industry post-Madoff, and a need for liquidity.

Spenner said: “Consequently, there will be less appetite for leverage, structured products and Madoff club-type deals.”Source

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Tags: Hedge Fund Investors Becoming More Institutional, Institutionalization of hedge funds, hedge fund investors becoming more institutional, institutional level of hedge fund investments

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