The world’s hedge fund managers are paying more attention to investing their cash balances, according to a recent survey by Horizon Cash Management.
Widely seen as highly aggressive, high performance investors, more and more hedge funds today are closely monitoring and using the best tools available to invest their cash balances to maximize returns and meet liquidity demands.
“We expect short-term yields to remain around 5 percent in 2007 and that hedge funds and other professional investors will continue to increase their use of smart, sophisticated cash management tools in the new year and beyond,” says Robert von Halle, a senior vice president at Horizon Cash Management, an independent cash manager for hedge funds and professional investors and sponsor of this survey.
Nearly half the hedge fund managers surveyed say they are using benchmarks to gauge returns on cash balances in their portfolios, according to “The 2006 Survey of Best Practices in the Hedge Fund Industry.”
The survey also revealed that the vast majority of funds (87 percent) said they monitor cash balances daily, up significantly from the 60 percent who reported doing so in the previous survey, which was conducted in 2001.