Alternatives renaissance

Private equity, property and infrastructure are set for a renaissance in institutional portfolios, though hedge fund investors are the least satisfied in the alternatives space, according to research from Preqin.

Alternatives renaissance

|

The Alternative Assets H2 2014 report, based on a survey of 380 investors, found that over 35% of investors in each of the four main alternative assets classes plan to increase their allocations over the longer term. 
 
At least a third of investors in each individual alternative asset class said they felt positively about the respective asset classes at present, with private equity investors most positive (51%). 
 
However, hedge fund investors were least satisfied with 27% feeling their hedge fund investments had fallen short of expectations over the past 12 months. 
 
“Institutional investors around the world are generally very positive about their investments in alternative assets at the moment,” said Andrew Moylan, head of real asset products at Preqin. 
 
“Although hedge funds have not had the best start to 2014 in terms of returns, all four main alternative asset classes are generating solid performance figures over longer investment horizons, and as a result investors are mostly satisfied with their portfolios.”
 
Interestingly, 30% of respondents said they had grown their alternative assets investment teams over the past two years, while 28% said they planned to recruit further in the next two years.