Hedge funds are back!

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This article by Mary Childs for Barron’s caught my attention and may be of interest to some clients. Here is a part of the article: Sentiment toward hedge funds has officially turned around. Data provider Preqin tracks the proportion of investors planning to increase or decrease their exposure to hedge funds. Since about December 2014, that metric has shown trouble: More clients were planning to flee the sector than join it. Now, that has shifted.

New data show that 27% of investors plan to boost their allocation in 2018, the biggest proportion since December 2013. 46% plan to maintain what they have got. It turns out that 2016 was a particularly rough year for hedge funds, as their poor performance failed to convince investors they were worth the high fees they charge. Clients pulled a net $110 billion from the sector, Preqin data show.

Here is the full ARTICLE.

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