A guide to investor sentiment and allocation plans for 2022 and hedge fund managers’ strategy for winning business
- Half of US allocators surveyed by With Intelligence said they were likely to increase their allocation to hedge funds in the next 12 months
- Interest is being driven by family offices (68%) and foundations/ endowments (55%), with the former citing equity valuation concerns
- Interest is being focused on long/short equity and multi-strategy hedge funds, particularly those with global and north American remits
- Overall, more US allocators were interested in hedge funds (50%) than all other alternative asset classes bar private equity (57%)
Buoyed by a healthy performance by hedge funds over the past two years, investors are taking notice, allocating to hedge funds with interests across public and private markets. With most forecasts for the coming year predicting continued market volatility as well as the introduction of monetary tightening to curb the threat of inflation, the benefits of investing in hedge funds (for their ability to diversify the portfolio as well as the opportunity to select funds that could deliver returns better than what is available from passive investing) will continue to attract capital over the coming year.
About the research
The findings in this report are based on the results of a survey of 224 US allocators conducted by With Intelligence’s The Allocator in December 2021.
Respondents were based across 40 US states and represented types ranging from single family offices to triple-digit billion-dollar institutions. Most of the exhibits in this report are based on the results of this survey, with additional exhibits and data points using With Intelligence’s mandates, investor flows and performance data.
Podcast: The Long-Short
The Long-Short is a new podcast by the Alternative Investment Management Association, focusing on the very latest insights on hedge funds and private credit.
Each episode will examine topical areas of interest from across the alternative investment universe with news, views and analysis delivered by AIMA’s global team, as well as a host of industry experts.
With Intelligence's Senior Research Analyst Christopher Brown breaks down the key findings of the recent WI-AIMA US Investor Intentions H1 2022 report and adds additional colour on what the data says about allocators and their views on alternative investments.
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