September 24, 2005

Rosy Future predicted for Hedge Funds

TowerGroup released a study that the Hedge funds and fund of funds will grow at an annualized rated of 15 per cent between 2005 and 2008. Which implies that the hedge funds total managed assets will increase by additional 75 per cent nearing the $2 billion mark by 2008. And when this is achieved the spending on administrative services would be over $2.5 billion. The study stated that there would be a substantial rise from the current levels for institutional investor’s inflow of funds in the hedge funds. It is also anticipates that hedge funds will lower their minimum investment requirements in order to draw a large chunk of retail investors into hedge fund investments. Thereby leading to broad network of multiple prime brokers, increased regulation and transparency coupled with usage of better technology. HedgeCo.Net Reports:

Such predictions have taken into consideration the growing interest of institutional investors in hedge fund managed portfolios. Secondly, it is also anticipated that as hedge funds continue to lower their investment minimums, particularly fund of funds managers, more retail investors will be drawn into hedge fund investments.

Read More: Hedge Fund assets projected to grow at an annual rate of 15 percent through 2008

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