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May 2021
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Majority of hedge fund institutional investors plan to raise allocations, AIMA study finds

Multi-asset, hedged equity, including long-only, and global macro strategies are among the most preferred hedge fund strategies of those looking to raise allocations
By Goh Thean Eu   
March 31, 2021

A majority of institutional investors in hedge funds are satisfied with the performance last year and plan to either increase or maintain their allocations in 2021, according to a global survey by the Alternative Investment Management Association (AIMA).

The group polled 241 hedge fund managers, and 59 institutional investors such as pension funds, sovereign wealth funds, insurers and family offices, for the Global Hedge Fund Benchmark Study. The survey was conducted in January.

According to the report, of the 59 institutions, 55% plan to raise allocations to hedge funds, and 40% plan to maintain their levels, a trend that it says was similar across regions, including in Asia.

Multi-asset, hedged equity – including long-only – and global macro strategies are among the most preferred hedge fund strategies of those looking to raise allocations.

The study found that two-thirds of hedge funds either met or exceeded their target returns last year. One-third of funds failed to meet their targets.

"The strong hedge fund performance in navigating a series of market draw-downs during 2020 has not gone unnoticed by investors. This sentiment has been loudly echoed through conversations we have held with asset allocators who are reinforcing their interest in alternative investment funds," AIMA says in the report published on March 30.