GLOBAL - Pension funds remain reluctant to commit to hedge funds despite overall investment in the asset class soaring, a new study shows.
Research by hedge fund consultant LJH Global Investments and data provider Reuters shows worldwide investment reached US$1.4bn (£868m) in the first quarter against US$596m in the previous quarter.
But pension fund investment remained static at Us$99.8m.
LJH president and chief investment officer James Hedges said: “The flows appear to be up fairly dramatically, but sticking with safe havens is what it is all about now.”
In the first quarter of 2003, investors put US$878.8m into equity hedge funds and US$101m into equity market neutral funds, which are two strategies that attempt to reduce risk.
Short-biased funds did not benefit from inflows for the second consecutive quarter while commodity trading advisers received just US$50.1m.
Global macro hedge funds received only US$36.8m.
During the first quarter, fund-of-hedge funds received the largest monetary inflows at US$371.8m – up from US$283.8m in the last quarter of 2002.
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