Data taken from the 2011 Preqin Hedge Fund Investor Review reveals that a large inflow of capital from institutional investors is expected in the next 12 months. There has been a continued renewal of the confidence lost in the asset class following the market crisis in 2008 and Preqin’s latest research indicates that nearly three quarters of institutions believe that hedge funds have either met or exceeded expectation in the past year. This revival in investor confidence and return to form performance wise has led to 35% of investors stating that they will increase their exposure to the asset class in the next 12 months. With just 10% of investors are planning to decrease their exposure this indicates that net inflows are on track to not only be positive, but potentially could return to pre-crisis levels. Much of this capital could be directed into new funds for the individual institutions; Preqin’s data suggests that 72% of the investors on the database are looking to adding fresh funds to their holdings to some extent over the course of the next 12 months.
Now in its fourth edition, the 2011 Preqin Hedge Fund Investor Review is an indispensible guide for all funds looking to gain institutional backing in the next 12 months. With listings for over 1,000 investors in the asset class, broken down by region and strategic focus and with key contacts at each institution, the Investor Review is an essential fund raising tool.