SHANGHAI, Feb. 22 (Xinhua) -- Investors have renewed optimism towards hedge funds in 2018, after a strong year for risk assets globally, a new survey indicates.
Deutsche Bank has released its 16th annual Alternative Investment Survey, with responses from 436 global hedge fund investors managing and/or advising 2.1 trillion U.S. dollars in hedge fund assets.
The hedge fund industry grew by 6.4 percent in 2017 and assets under management reached an all-time high of 3.21 trillion dollars by year-end, according to the report. The respondents' hedge fund portfolios broadly met their 2017 return targets, representing the first year that investors achieved their set targets in four years.
"We are seeing a shift in momentum with improved performance and positive flows," said Greg Bunn, Global Co-Head of Prime Finance at Deutsche Bank. "One in two investors plans to grow their allocation to hedge funds in the next 12 months. We found that the average respondent expects to boost the size of their portfolio by 129 million dollars this year."
The survey reveals that investors are optimistic in their outlook for the industry in 2018, expecting hedge funds to receive 41 billion dollars in net new investor capital for the year.
According to the survey, Western Europe has displaced North America as the most sought after investment region, with 37 percent of investors planning to add to their European exposure in 2018. Asia is close behind, with 30 percent planning to add to Asia, including Japan.
Ashley Wilson, Global Co-Head of Prime Finance and EMEA (Europe, the Middle East and Africa) Head of Equity Trading at Deutsche Bank, said, "Investors appear more optimistic in their outlook for Europe and Asia. These regions provide more alpha opportunities across multiple countries with diverse market structures."
