The report of «money trail» (The Trail of Money) of the «Barclays Capital» that the hedge fund industry on the verge of a lot of challenges in 2012, but will at the same time a lot of opportunities.
It is likely that investors pumping new capital worth some $ 80 billion, in addition to the redistribution of nearly $ 300 billion of assets deposited in advance in hedge funds. Thus, it is expected that the hedge fund industry for the movement of capital between $ 350 to $ 400 billion over the next 12 months; which represents almost one fifth of assets under management currently in the sector.
The report «Barclays Capital» analysis based on the poll included 165 investors and was conducted during the “Forum for hedge funds,” which established company “Prime Servsz” of the “Barclays Capital” in New York, as well as personal interviews with investors and a number of other analysis in the sector .
And manages the investors who participated in this survey the total assets worth about $ 4 trillion has been allocated 500 billion dollars, including hedge funds, representing about a quarter of the total assets under management in the sector.
Plans to investors in hedge funds make significant changes during the current year because of the foggy, which dominates the macro-economic environment and volatility witnessed in global markets recently, but some of these changes will be significant opportunities for the hedge fund industry; recalling 56% of investors surveyed indicated that they intend to increase the amounts allocated of hedge funds over the next 12 months, which represents 7 times the number of investors who intend to reduce this type of investment. It is likely that each of the endowment funds, foundations, and private banks and public pension funds in the forefront of that new capital will be allocated to hedge funds during the year 2012.
In this context, said Ajay Nagbal, President of the “Prime Servsz” in the “Barclays Capital”: “indicates our analysis that it is likely that the Investors are pouring new capital worth some $ 80 billion in hedge fund industry this year; which qualifies the year 2012 to be the yearMore importantly in terms of volume of new capital allocated to hedge funds since 2007. ”
Movement of capital
And as well as new assets amounting to almost $ 80 billion, it is likely that investors also re-distribution of about $ 300 billion of assets deposited in advance in hedge funds. In all cases, it is expected that the hedge fund industry for the movement of capital between $ 350 to $ 400 billion over the next 12 months; representing almost one fifth of assets under management currently in the sector.
As for how to employ these new flows, Faatzm investors, the distribution of most of the global strategies of macroeconomic strategies and methodology, or designed to deal with volatility and, as part of their quest to build more of the strategies and tactical-based trading while maintaining a relatively low level of correlation with stocks. The focus of most of the re-distribution strategies in equities and credit, and stay away from weak stocks, and their belief to the occurrence of reflux Reverse the middle levels, and their preference for the use of more specialized products in these strategies.
Indicate preferences to investors that 2012 will see a continued trend of increased amounts of capital allocated to hedge funds that do not exceed the value of assets managed by the billion. The small hedge funds has doubled its share of new flows during the first nine months of 2011 compared to in 2010 as a whole (18% of the total net flows of hedge funds versus 9%).
For the year 2012, is likely to continue this trend with the expression of 77% of the investors for their tendency to distribute the money to fund small, compared with only 10% of those who tend to increase their investments in the funds large increase the value of assets managed by the $ 5 billion.
For his part, said Louis Molinari, Head of Solutions of capital in the “Prime Servsz” of the “Barclays Capital”: “strengthened in the present time the confidence of investors, the ability of fund managers of small to adopt strategies more flexibly in order to generate profits exceeding rates. It also increases the confidence of investors investment in this part of the hedge fund industry because many of the funds provided by small and new from increased transparency and better terms at the level of fees and liquidity. “