Pensions, Endowments

The percentage of investors holding hedge-fund assets in a separate “alternatives” bucket fell to 50 percent from 56 percent last year, according to the survey.

Institutions such as pensions, endowments, foundations and insurers now account for two-thirds of industry assets, rising from a third before the 2008 crisis, it showed. Almost half of the institutions in the survey increased allocations to hedge funds last year and 57 percent plan to expand such assets in 2014, according to the survey.

Funds betting on rising and falling stocks and those that seek to profit from corporate events such as mergers are the most sought after strategies this year, with more than 50 percent of investors indicating they would add to such funds, according to the survey. Global macro, a strategy that seeks to profit from economic trends, ranked third.

Stock Pickers

“With the end of quantitative easing and an unexpected increase in volatility and dispersion, 2014 may prove to be more of a stock picker’s market,” Fitzwilliams said. “Investors believe economic fundamentals, as opposed to political rhetoric, are going to have a greater influence on global asset prices over the next 12 months.”

Regionally, 29 percent of all investors in the survey plan to increase allocations to Japan this year, trailing only Western Europe and ahead of North America.

Europe’s largest investment bank by revenue started the annual survey in 2002. The latest edition polled investors including pensions, endowments, investment consultants, funds of funds, family offices and private banks.

First « 1 2 » Next