Twelfth Annual Alternative Investment Survey (Deutsche Bank)

February 2014

KEYWORDS: hedge funds, hedge fund investor, Survey, Institutional Investors, portfolio management, Liquidity, risk management, assets under management, asset management

Authors:

Deutsche Bank

Organizations:
  • Deutsche Bank

Summary:

When we first published this survey in 2002, the hedge fund industry was still in its nascent stages with $539bn in total AUM, representing a mere fraction (8%) of the $7tn mutual fund industry. In just twelve years, however, hedge funds have matured from a “cottage industry” into a formidable part of mainstream asset management. By the end of 2013 industry assets had reached a record high of $2.6tn, representing 17% of the volume of US mutual funds assets.

The growth and maturation of the industry has brought about great change to the role that hedge funds play in institutional investors’ portfolios. As leading managers continue to diversify their product lines, and institutional investors take a more dynamic, risk-based approach to asset allocation, we are increasingly seeing a blurring of lines in terms of how clients access and utilize hedge funds within the wider portfolio. The implications of such trends mean that “hedge funds” are no longer viewed as a separate asset class, but rather as broader portfolio solutions.

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