Hedge Funds Expected to Profit from Strong Investor Inflows, New Study Reveals
As markets brace for uncertainty, investors expect hedge funds to offer
positive returns while reducing portfolio risk
NEW YORK – July 12, 2022: New research from leading quant technology provider SigTech reveals strong optimism from hedge funds for increased investor inflows.
SigTech conducted a global survey1 of hedge funds with $194 billion in assets under management collectively. 83% of respondents expect institutional investors to increase their allocation to hedge fund strategies over the next two years, with nearly one in four (23%) expecting a dramatic increase.
The primary reason identified for institutional investors increasing allocation to hedge funds over the next five years was the expectation that they can generate absolute returns in any market environment. The research further found investors believe hedge fund strategies play an important role in mitigating certain risks and improving overall portfolio diversification.
A key factor in attracting flows from institutional investors is the level of transparency of the investment process employed by a hedge fund. 90% of survey respondents identified this as an important issue.
Read the rest of the report’s findings here: SigTech Hedge Fund Research Report 2022
Commenting on the report, Daniel Leveau, Vice President, Investor Solutions at SigTech, said: “Our research shows a high degree of optimism amongst hedge funds for growing their assets under management. Advances in technology enable greater in-depth analysis of data and ever more sophisticated investment strategies. This represents a huge opportunity for hedge funds to unlock the true value of financial data.”
“However,” Leveau added, “with this comes greater demands from institutional investors for more transparency around strategies and investment processes.”
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Notes to editors1 SigTech commissioned the research company PureProfile to interview 100 hedge funds in North America, Europe and Asia Pacific. The survey was conducted online in Q2 2022.
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About SigTech (www.sigtech.com)
SigTech offers quant technologies for global investors and data owners. Cloud-hosted and Python-based, SigTech accelerates the data-driven investment process, from research to live trading. The platform integrates an industry leading backtesting engine with clean, validated data across asset classes. SigTech eliminates the expensive upfront costs of infrastructure build-out, giving clients an edge in alpha generation from day one.
The SigTech platform was originally built over eight years ago to manage systematic investments at Brevan Howard, which remains a SigTech client today. After the spinoff into an independent company in early 2019, the team has grown substantially and established SigTech as the leading provider of quant technologies.
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