Financial News Online US- Institutional investment represents 25% of large hedge funds’ assets, according to a report which comes as corporate and public pension funds continue to allocate more money to the sector.
Corporate and public pension funds account for a greater portion of assets for large hedge funds, the report by Greenwich Associates found. Hedge fund investment by corporate and public pension funds increased for the third year in a row. Large hedge funds were defined as ones with over $1bn (€745.2m) in assets.
Direct investment by 1,182 endowments or foundations, corporate pension funds and public pensions collectively account for 25% of assets in large hedge funds, according to the institutional research firm. Institutional Investment comprised 20% of hedge fund assets in 2005, and 23% in 2006.
Corporate pension investment in large hedge funds edged up to 8% in 2007 from 7% a year ago. Investment by endowments and foundations inched up to 11% from 10% in 2006. Public pension fund contributions rose to 6% from 5% last year.
The report surveyed 1,658 hedge funds on the internet from November 2006 to January 2007.
