Hedge fund managers are overwhelmingly optimistic about the direction of the industry, with large majorities predicting an increase in industry assets and an overall positive outlook for the industry in 2014. New data released by Preqin show that a full 83% of surveyed managers believe hedge fund industry assets will increase this year. Separately, 73% of respondents believe that 2014 will be a positive year for the hedge fund industry.
Last year, Preqin noted that only 55% of responding managers thought that 2013 would be a positive year, showing the large shift in positive thoughts for the industry this year. Preqin also reported that 41% of managers said they have seen an increase in the proportion of assets coming from institutional investors over the past year. That number coincides with the fact that a record 66% of hedge fund capital comes from institutions, an increase from 65% last year.
Separately, “a quarter of all fund managers that participated in the study stated that they plan to launch a new hedge fund over the course of 2014,” Preqin reported. Thirty percent of Asia-Pacific-based managers have plans for a new fund in 2014, while 24% of North America-based fund managers and 21% of European-based fund managers do. Preqin noted that the Alternative Investment Fund Managers Directive (AIFMD) has had a negative impact on the amount of fund launches in Europe, a trend that is likely to continue throughout 2014. Of the managers that plan to launch a fund this year, 80% plan to do so in the first-half of 2014.
Read more about the feedback from hedge fund managers in the monthly Preqin report.