Reuters- Institutional investors are set to invest $85 billion into hedge funds and funds of hedge funds over the next 12-18 months, according to research firm Private Equity Intelligence (Preqin).
In a note on Friday, Preqin said while high net worth individuals were the main investors in hedge funds towards the end of last century, pension plans, many of which are in deficit, are increasingly reconsidering their investment policies and diversifying into alternative assets.
“We forecast that in the next two years the average public pension plan target allocation to hedge funds will increase by 2-3 percent of total assets, reaching 8-9 percent,” Preqin, which has taken data from more than 1,000 institutional investors, said in a note.
