Private equity gets bum rap at expense of golden child hedge funds
| Apr 12th, 2007 | Filed under: Hedge Fund Industry Trends, Private Equity | By: Alpha Male |
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Apparently it’s institutional investor survey season in the US. Yesterday, Greenwich Associates released the latest findings from its on-going pulse-check of institutional investors. Although they seem to warrant their own headline in the firm’s press release, hedge funds top out at 2.1% of all institutional assets – up a whopping 0.1%/year for the past two years. At least the proportion of institutions that invest in hedge funds has risen by more than that – from 29% in 2004 to 36% in 2006.
But Greenwich’s Chris McNickle says:
“The data suggest that institutional use of hedge funds will only grow in coming years. Twenty-two percent of U.S. funds expect to make significant increases to hedge fund allocations by 2009. Among public pension funds, more than 42% are planning significant increases to their hedge fund allocations.”
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