Beyond 60-40: The evolving role of hedge funds in institutional investor portfolios

AIMA

This paper, published by the AIMA Investor Steering Committee (ISC), a committee of institutional investors that undertakes educational initiatives and provides practical guidance within AIMA, considers the evolving role of hedge funds in institutional investor portfolios. It is based on a survey of some of the most important institutional investors in hedge funds globally. It finds that institutional investors are moving away from the traditional 60% equities/40% bonds portfolio structure and increasingly using alternatives in general and hedge funds in particular as tools to customise their portfolios.