The TWD 1.4 trillion Shin Kong Life Insurance Co is set to make its first new hedge fund investments since 2008. The move comes as the firm restructures its hedge fund investment portfolio, with the intention of moving away from direct investments with single managers into funds of funds, in a move contrary to wider trends in the industry. Previous Preqin research indicates that the majority of institutional investors initially begin investing in hedge funds and then begin to allocate capital directly to single manager funds as they gain experience in the asset class. However, although it already currently invests in funds of funds, Shin Kong Life Insurance Co. now intends to allocate all of its hedge fund capital to multi-manager vehicles following its single fund redemptions. The insurance company plans to hire two new funds of hedge funds in 2011. Whilst it has yet to be determined how much capital will be allocated to these new investments, it is likely that the strategic focus of the prospective managers will be focused on CTA and global macro strategies.
This information was sourced from Preqin’s Hedge Fund Investor Profiles database of 2,500 institutional investors in the asset class. For further information and a demo of the service please visit http://www.preqin.com/wizTrial.aspx