Hedge Funds Increase In popularity

According to research by the Alternative Investment Management Association (AIMA), an absolute majority of all assets under management by hedge funds and funds of hedge funds
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According to research by the Alternative Investment Management Association (AIMA), an absolute majority of all assets under management by hedge funds and funds of hedge funds globally are from institutional investors.

Pension funds, university endowments, foundations and governmental authorities have replaced high-net-worth individuals as the major investors in hedge funds. A third of those assets from institutional investors now come from pension funds, making up a sixth of overall AUM invested in hedge funds.

According to Andrew Baker, Chief Executive of AIMA: Because institutional investors like pension funds now account for a majority of funds invested, the hedge fund industry is increasingly acting as a custodian of pensions and savings. Thats because hedge funds have historically both delivered much better returns and been less volatile than equities.

The figures were produced by AIMA’s research department, and were based on consultation with the association’s members. AIMA has more than 1,200 corporate members in 43 countries globally, including industry hedge fund managers, fund of hedge funds managers, advisers and service providers.

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