The hedge fund industry will see more increases in capital allocations from corporate pension plans in Europe than those arising from endowments, foundations and insurance funds, according to Goldman Sachs' Hedge Fund Investor Survey.
The current figure of 18% of respondents who currently have some of their capital flowing in from corporate pension plans is expected to grow to 40% by the end of this year.
The survey respondents, which included private investors, institutional investors and fund of funds, anticipate that assets under management in the European hedge fund industry will grow from $45bn currently to $73bn by the end of 2001.
The results also suggest that there will be a marked shift in allocations. By strategy, investors indicate renewed interest in global macro, fixed income arbitrage and distressed strategies, and diminished allocations to long/short strategies, merger arbitrage and convertible bond arbitrage. By region, respondents also expect increased exposure to Japan, Asia ex-Japan and emerging markets.
By Janet Du Chenne
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