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February 13, 2006
84% of wealthy US families to invest in hedge funds
About 45% of wealthy families invest in funds of hedge funds, and 84% expect to do so the next three years, says a report from Prince & Associates. Now big institutions are dipping their toes into hedge fund waters. About 60% of U.S. foundations and endowments are invested in hedge funds, along with about 20% of pension funds.
Pensions by far have the most dollars to invest, but their hedge fund allocation represents only 1% of their $5 trillion in assets. They tend to invest in funds of hedge funds to spread the risk. The nearly $200 billion California Public Employees Retirement System, one of the nation's biggest investors, recently voted to double its hedge fund allocation to $2 billion. Imagine what would happen to hedge fund asset growth, the report postulates, if pension funds increased their exposure to, say, 10%.
-Investors.com-
Posted by su at February 13, 2006 10:05 AM