Pension funds to increase weight of hedge fund exposure

4 June 2009
| By Mike |

A Barclays Capital report suggests that pension funds will increase the weight of their hedge fund exposure in their portfolios this year.

The report, which included market analysis and interviews with around 300 investors and 100 hedge fund managers, showed that pension funds and family offices are expected to be the most active allocators in 2009.

Pensions, which are traditionally one of the most conservative investor types, are now boosting their $437 billion hedge fund allocation as they look to balance assets and liabilities, according to the report.

Investors surveyed reportedly held an average of 14 per cent of their portfolios in cash, with nearly 80 per cent planning to reallocate during 2009.

Meanwhile, insurance companies, private banks, endowments and foundations are likely to decrease their allocations to hedge funds.

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