Advanced Trading – Although the near-term outlook for the hedge fund industry remains murky in light of the European debt crisis and ongoing weak U.S. economic growth, the picture is brighter for the sector over the long haul. Even as the industry continues its long slog back from its worst quarter since the 2008 global market crash, data shows that investor redemptions remain near historical lows.
Institutional investors — which now comprise a significant portion of the hedge fund industry’s client base — are a big reason for the relative stability, experts say, since a bad month or quarter is unlikely to deter their long-term strategies. Unlike 10 or 15 years ago, when hedge funds primarily took investments from private wealth and private equity, a large portion of the money they now manage comes from pension funds and endowments as those traditional investment vehicles increasingly seek greater returns.
