The Hedge Fund Investor Sentiment Survey (Credit Suisse)

July 2014

KEYWORDS: hedge fund investor, Hedge Fund Managers, Hedge Fund Performance, hedge funds, Institutional Investors, Survey

Authors:

Credit Suisse

Organizations:
  • Credit Suisse

Summary:

The Credit Suisse mid-year Hedge Fund Investor Sentiment survey which polled 284 global institutional investors representing USD 544 billion in hedge fund investments on their current streategy appeptite and allocation activity.  This survey follows Credit Suisse’s Annual Global Investor survey published earlier this year.

The second half of 2014 looks set to be a strong period for capital allocations to hedge funds, according to a poll of institutional investors conducted by Credit Suisse Capital Services.  Of the investors surveyed, 97% indicated that they plan to be highly active in making allocations during the second half of this year.  This compares favorably to 85% of investors who responded that they had already been active in making allocations in the first half of the year.

Survey highlights include:

- The top 3 most sought after strategies globally are Event Driven, Long/Short Equity (Fundamental) and Long/Short Equity (Trading). CTA is the least sought after strategy across all regions.

-Demand for Global Macro saw a consistent decrease, while Emerging Market Equities saw a rebound in appetite.

-Although more investors expressed interests in making allocations in the second half of the year (97% in H2 2014 vs. 85% in H1 2014), investors are predicted to make a fewer number of allocations on average (3.4 in H2 2014 vs. 4.1 in H1 2014).

-EMEA based investors are predicted to make a higher number of allocations compared to other regions in H2 2014.
-Looking at the split by investor type, Bank Prop Capital, Fund of Funds and Private Banks are predicted to make the most allocations, while Pension Funds the least.

 

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