MFA Blog

New Data Highlights Important Role of Hedge Funds for Institutional Investors

Posted on August 22, 2018

New independent data released today highlights the important role hedge funds play in the investment portfolios of the charitable endowments, universities, and pension plans that account for nearly 60 percent of the industry’s AUM. These investors allocate more to hedge funds than any other alternative investment class and they cite diversification and reliable, risk-adjusted returns as the top reasons for their investment.

Investors are also pleased with the performance of these funds – two-thirds said performance over the past year met or exceeded their expectations and over 80 percent expect them to perform as well or better in the next year. 70 percent of those surveyed plan to make their next investment before the end of the year.

This data reaffirms the fact that institutions rely on hedge funds to manage risk and volatility in their portfolios while earning reliable, risk-adjusted returns over time. That is one of several reasons they will continue to play an active and dynamic part in our capital markets and our economy as a whole for years to come.