European Hedge Fund Survey. Largest hub for European hedge fund investment is UK – nearly 40% of European institutional investors in hedge funds.
Switzerland Hedge Funds
Switzerland follows the UK with 22% of hedge fund investors located there. Switzerland’s investor base of insurance, private banking and pension funds remains active in the hedge fund space, and there are new centers of activity emerging.
Paris and Netherlands Hedge Funds
Paris and the Netherlands are growing as a newer investor base for hedge funds although both areas still remain somewhat cautious about getting involved with alternatives. The hedge fund investor base in both countries remains in the single digits but that hasn’t stopped new funds from launching. According to a report from Risk.net, former Societe General executives have recently joined forces on a new multi-commodity discretionary hedge fund that will be managed from Paris.
European institutional investors remain committed to investing in hedge funds despite turbulent markets and somewhat choppy returns. Nearly half of respondents in a recent survey of institutions plan to make new allocations to hedge funds in 2012. Funds using long/short equity or global macro strategies are likely to get most of those allocations. Investors are specifically interested in co-mingled, single manager funds using these strategies. 19% of respondents said they would look at UCITS funds, but traditional fund structures are expected to continue dominating investor’s portfolios.
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