Hedge Fund Allocations: A Growing Number of Investors Plan to Decrease
Decreasing Hedge Fund Allocations
According to a recent survey by Preqin, 35% of investors intend to reduce their allocations to hedge funds in the 12 months from June 2024, up from 26% the previous year.
Reasons for Decreasing Allocations
Investors cited several reasons for their decision to decrease hedge fund allocations, including:
- Disappointment with recent performance
- Concerns about high fees
- A desire to reduce risk
Long-Term Perspective
Despite the increase in investors planning to decrease their hedge fund allocations, many are still holding steady for the long term.
Investors are not planning to dramatically increase their hedge fund investments anytime soon, but they are also not planning to exit the market altogether.
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