Small and obscure hedge funds are the new black. After a decade of favoring hedge fund behemoths — funds with $5 billion in assets and larger — deep-pocketed investors in growing numbers appear ready to put their cash to work with smaller firms, some with assets of less than $1 billion, a recent Ny Post report has found.
The seismic investment change comes as US stock markets continue to muddle along and some large hedge fund players blow up.
A whopping 79 percent of investors in the study plan to up their allocations to smaller hedge funds, or those with less than $1 billion in assets, next year, according to the 30-page report based on a survey and interviews with 165 investors representing $4 trillion in assets, including $500 billion in hedge-fund assets.
By contrast, a mere 26 percent of those surveyed said they plan to increase the amount they will give to big funds, or those with more than $5 billion in assets.
What’s more, 16 percent said they plan to decrease their allocations to big hedge funds next year, compared to just 2 percent who said the same for small funds.
Read more: http://www.nypost.com/p/news/business/liking_little_hedges_DL6cyDlXJpn3QapsPN11cP
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