12 Dec 2011
The willingness of Asian investors to invest in emerging hedge funds has risen by 11% over the past year, research by Preqin shows.
Whereas, 39% of European and 48% of North American investors would consider investing in these funds, 58% of their Asian counterparts are willing to do so. Overall, 48% of investors voiced that they would be willing to invest in such funds, a decline from 54% in 2010.
The research also showed that 78% of investors will invest with managers that have less than $500million in AUM and 11% will only invest with managers with over $1bn under management, twice the proportion noted in 2010.
Whereas, 39% of European and 48% of North American investors would consider investing in these funds, 58% of their Asian counterparts are willing to do so. Overall, 48% of investors voiced that they would be willing to invest in such funds, a decline from 54% in 2010.
Amy Benstead, Manager of Hedge Fund Data, said: “In 2012, emerging manager vehicles are likely to appeal to investors disappointed by the returns from their existing hedge fund portfolios. Similarly, with fees also a key issue for institutional investors at present, emerging managers willing to negotiate fund terms with potential investors could also be successful in attracting capital.”
The research also showed that 78% of investors will invest with managers that have less than $500million in AUM and 11% will only invest with managers with over $1bn under management, twice the proportion noted in 2010.
The research also showed that 78% of investors will invest with managers that have less than $500million in AUM and 11% will only invest with managers with over $1bn under management, twice the proportion noted in 2010.

