{"id":40779,"date":"2014-02-24T07:17:10","date_gmt":"2014-02-24T12:17:10","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=40779"},"modified":"2014-02-24T07:22:48","modified_gmt":"2014-02-24T12:22:48","slug":"deutsche-bank-hedge-funds-to-reach-3-trillion-in-2014","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/02\/2014\/deutsche-bank-hedge-funds-to-reach-3-trillion-in-2014.html","title":{"rendered":"Deutsche Bank: Hedge Funds To Reach $3 Trillion In 2014"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/images-41.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-40791 alignright\" alt=\"images (4)\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/images-41.jpg\" width=\"225\" height=\"225\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/images-41.jpg 225w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2014\/02\/images-41-150x150.jpg 150w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/a>New York (HedgeCo.Net) &#8211; Hedge funds are expected to reach a record breaking $3 trillion by year-end 2014, up from $2.6 trillion in 2013,\u00a0Deutsche Bank reports. The\u00a012th annual Alternative Investor Survey is is based on investors\u2019 predictions of $171 billion net inflows and performance-related gains of 7.3% (representing $191 billion).<\/p>\n<p>&#8220;Hedge funds continue to establish their growing position within the broader asset management industry, alongside some of the more mainstream asset managers.&#8221;\u00a0Barry Bausano, co-head of global prime finance at Deutsche Bank, said, &#8220;The hedge fund industry is predicted to reach a record $3 trillion by 2014 year end driven by significant inflows, most notably from institutional investors.&#8221;<\/p>\n<p><b>Other survey highlights\u00a0include:<\/b><\/p>\n<ul>\n<li><b><i>Commitment from institutional investors continues to strengthen<\/i><\/b>\u00a0\u2013 Nearly half of institutional investors increased their hedge fund allocations in 2013, and 57% plan to grow their allocations in 2014. Institutional investors now account for two thirds of industry assets, compared to approximately one third pre-crisis.<\/li>\n<li><b><i>Investors are happy with hedge fund performance<\/i><\/b><b>\u00a0\u2013<\/b>\u00a0Eighty percent of respondents state that hedge funds performed as expected or better in 2013, after their allocations returned a weighted average of 9.3% in 2013. Sixty-three percent of respondents, and 79% of institutional investors, are targeting returns of less than 10% for their hedge fund portfolios in 2014. Equity long short and event driven are the most sought after strategies.<\/li>\n<li><b><i>2 &amp; 20 is not the norm<\/i><\/b><b>\u00a0\u2013\u00a0<\/b>Investors today pay an average management fee of 1.7%, and an average performance fee of 18.2%. While fees have come down slightly, investors remain willing to pay for performance: almost half of all investors would allocate to a manager with fees in excess of 2 &amp; 20 where the manager has proven \u201cconsistent strong performance in absolute terms\u201d.<\/li>\n<li><b><i>A bigger part of a bigger pie \u2013 hedge funds get reclassified<\/i><\/b><b>\u00a0\u2013\u00a0<\/b>Thirty-nine percent of investors are now embracing a risk-based approach to asset allocation, up from 25% in 2013. Forty-one percent of pension consultants recommend this approach to clients. The risk-based approach effectively removes historical constraints on the percentage allocation to absolute return strategies, allowing equity long\/short managers to compete with long only and fixed income absolute return funds within the overall fixed income risk budget.<\/li>\n<\/ul>\n<p>&#8220;With the majority of investors happy with hedge fund performance, we expect institutional investors to further strengthen their commitment to hedge funds. Last year\u2019s respondents targeted 9.2% for their hedge fund portfolios, and hedge funds delivered \u2013 the weighted average return for respondents\u2019 hedge fund portfolios this year was 9.3%. Looking forward, respondents are targeting 9.4% for 2014.&#8221;\u00a0Anita Nemes, global head of the hedge fund capital group at Deutsche Bank, said.<\/p>\n<p>This year over 400 investor entities participated, representing over $1.8 trillion in hedge fund assets and over two thirds of the entire market by assets under management (AUM).<\/p>\n<p>Alex Akesson<br \/>\nEditor for\u00a0<a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; Hedge funds are expected to reach a record breaking $3 trillion by year-end 2014, up from $2.6 trillion in 2013,\u00a0Deutsche Bank reports. The\u00a012th annual Alternative Investor Survey is is based on investors\u2019 predictions of $171 billion [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16044,919,3],"tags":[],"class_list":["post-40779","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-strategies-2","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=40779"}],"version-history":[{"count":6,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40779\/revisions"}],"predecessor-version":[{"id":40792,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/40779\/revisions\/40792"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=40779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=40779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=40779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}