Deutsche Bank surveyed 1,000 investors with $1,100bn invested in alternative assets. The results are merely surprising and reflect the current sentiment.One third expect more than $200bn to be withdrawn from hedge funds in 2009 while a quarter of investors expect net inflows into the industry. 82 per cent of the 1,000 surveyed said redemptions were the biggest issue hedge fund managers face. Most investors expected more than a fifth of hedge funds to go out of business this year.
Investors are increasingly demanding better transparency and rating risk management as more important than a managerâ??s pedigree for the first time.
Currently the most popular strategies are global macro, distressed companies, long/short credit trading and convertible bond arbitrage, while more than 40 per cent of those surveyed planned to reduce their exposure to merger arbitrage and event-driven funds.
