Money managers under the microscope
It is still a moot point whether institutional investors are putting more money into hedge funds or taking money out.
Yesterday Antonio Borges, chairman of the Hedge Fund Standards Board, told Reuters that there had been a “dramatic reversal” since December and that institutions were “returning to the hedge fund industry in a very serious, well thought-through process”.
However, a Reuters poll published today of 10 UK investment firms showed that on average they reduced allocations to alternative assets in March.
The two results are not necessarily contradictory, but do show that the very recent actions by investors towards hedge funds, which delivered their worst ever performance last year, seem to be varied and hard to gauge.