Reuters- Hedge funds and other absolute return-style portfolios are gathering ever more assets, in spite of sub-market returns, presenting a challenge as to how to invest them and a dilemma for new investors eyeing these funds.
The outlook for alternative assets, whose promise of returns less correlated to stock markets has attracted pension funds and retail investors alike, will be a key talking point for top fund executives at the Fund Forum 2007 in Monaco from July 3-5. “Innovation will be the theme for 2007 as larger hedge funds move into ever more illiquid and alternative investment areas to meet capacity needs,” said Tom Brown, deputy global head of investment management and funds at KPMG in the UK and a speaker at the conference.
“As new money moves into the sector, managers will have to look to new strategies and new markets to find the assets needed to maintain strong returns.”
The $2 trillion hedge fund industry has grown rapidly in recent years, thanks to its ability to make money in all markets, but returns have varied markedly between strategies.
