As returns fall, hedge fund managers need to better articulate their value proposition, risk mitigation and performance expectations in order to maintain steady institutional investor commitment rates, according to SEI and Greenwich Associates fifth annual global study of the asset class.
The study showed that 38% of institutional investor respondents planned to increase target allocations over the next 12 months, a figure which is lower than previous years, but has to be weighed against a 54% increase in 2010. Average annualized returns fell to 6% ....