NEW YORK, July 12, 2016 /PRNewswire/ -- Credit Suisse
today announced the results of its mid-year Hedge Fund Investor
Sentiment Survey, which polled over 200 global institutional
investors representing almost USD 700
billion in hedge fund investments. Participants were
surveyed on their hedge fund activities during the first half of
the year as well as strategy appetite and allocation plans for the
second half of the year. This survey follows Credit Suisse's Annual
Global Investor Sentiment Survey that was conducted in January 2016.
Key highlights from the survey included:
- Despite the majority of institutional investors redeeming from
hedge funds during the first half of this year, most continue to
view hedge funds as playing a key role in their investment
portfolios as 73% of respondents will likely make additional hedge
fund allocations during the second half of 2016.
- Redemptions appear to have been highly targeted as 63% of
investors indicated that the primary driver of first half
redemptions was specific fund underperformance or style
drift. 11% of investors attributed redemptions to changes in
their asset allocation model, while only 9% said that they were a
result of disappointment with the performance of their hedge fund
portfolios in general.
- The top 3 most frequently mentioned strategies being considered
for second half allocations were Equity Long/Short, Equity Market
Neutral and Global Macro, which were also three of the top
strategies in the Credit Suisse Annual Investor Survey conducted
earlier this year.
Robert Leonard, Managing Director
and Global Head of Capital Services at Credit Suisse
commented:
"Despite some outflows from the hedge fund industry this year,
most institutional investors appear to be staying the course and
intend to recycle the vast majority of capital back into other
hedge funds.
"Investors also indicated that their redemptions have been
highly targeted and selective mostly driven by specific fund
performance rather than an overall change in attitude towards hedge
funds in general.
"It is notable that while some investors expect to make
additional redemptions in the second half of this year, almost
three quarters indicated that they will also likely be making new
allocations to hedge funds during that time as well. This
confirms institutional investors continue to see a role for hedge
funds in their portfolios."
Other findings from the survey included:
- The majority of investors (84%) confirmed that they had
undertaken some level of redemptions from their hedge fund
portfolio during the first half of this year.
- 82% of investors who redeemed from hedge funds during the first
half indicated that they would likely reallocate that capital to
existing hedge funds in their portfolio as well as to new funds.
Only 9% of investors said that they were not likely to reallocate
redeemed capital to hedge funds.
- Main drivers for potential future allocations were identified
to be opportunistic, based on strategy or manager performance (60%)
and continued outperformance of current hedge fund allocations
(12%).
- Pension funds proved to be the "stickiest" investors during the
first half of this year with 31% reporting no redemptions to their
hedge fund portfolios. That was followed by endowments/foundations
at 25%, family offices at 13% and fund of funds at 8%.
- With respect to preferred structures (other than traditional
Master/Feeder), investors indicated additional interest in Liquid
Alternatives, Risk Premia vehicles and Equities Co-Investment.
- Looking ahead, 76% of US investors said they would likely make
second half allocations to hedge funds. 86% of APAC investors and
64% of EMEA investors indicated they were also likely to do
so.
About the respondents
The survey covered institutional investors on a global basis
including fund of funds, family offices, consultants, endowments
& foundations, private banks and pension funds. 67% of
responses came from the Americas, while 25% came from EMEA-based
investors and 8% came from APAC.
For a copy of the complete survey, please click here.
Credit Suisse AG
Credit Suisse AG is one of the
world's leading financial services providers and is part of the
Credit Suisse group of companies (referred to here as 'Credit
Suisse'). As an integrated bank, Credit Suisse offers clients its
combined expertise in the areas of private banking, investment
banking and asset management. Credit Suisse provides advisory
services, comprehensive solutions and innovative products to
companies, institutional clients and high-net-worth private clients
globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in
Zurich and operates in over 50
countries worldwide. The group employs approximately 47,760 people.
The registered shares (CSGN) of Credit Suisse's parent company,
Credit Suisse Group AG, are listed in Switzerland and, in the form of American
Depositary Shares (CS), in New
York. Further information about Credit Suisse can be found
at www.credit-suisse.com.
Credit Suisse Prime Services
Credit
Suisse Prime Services delivers outstanding core financing and
operating services that hedge fund and institutional clients
require, including start-up services, product access, high-touch
client service, financing, access to sources of capital, risk
management, and managed lending. Prime Services delivers the
strengths of Credit Suisse's investment banking, private banking
and asset management business to a focused number of clients. As a
partner, Prime Services is committed to bridging the gap between
idea and execution and ultimately functioning as the provider of
choice for both the alternative and traditional investment
communities. Credit Suisse Capital Services is part of Credit
Suisse Prime Services and is responsible for introducing hedge fund
managers to a broad range of institutional investors (including
Funds of Hedge Funds, Family Offices, Private Banks, Endowments and
Foundations, and Public and Corporate Pensions) who are seeking to
allocate capital to Hedge Funds.
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SOURCE Credit Suisse AG