Professional investors are predicting dramatic increases in allocations to hedge fund strategies over the next year by pension funds, other institutional investors and wealth managers, according to new research from Managing Partners Group (MPG), the international asset management group.
Nearly two out of five (36 percent) believe allocations will increase dramatically, with a further 57 percent predicting a slight increase, according to MPG’s research with wealth managers and institutional investors who are collectively responsible for £258 billion (€293 billion/$318 billion) assets under management.
A key growth sector in the year ahead will be arbitrage funds which have performed well in the current volatile markets, the study found. Around a third (31 percent) expect dramatic growth in allocations to arbitrage investment strategies, with a further 59 percent forecasting a slight increase.
The study among professional investors across Switzerland, Germa
