Despite Significant Redemptions, Credit Suisse Survey Finds Investors Remain Committed to Hedge Funds

Credit Suisse Capital Services (CS) recently issued its “Mid-Year Survey of Hedge Fund Investor Sentiment” (Mid-Year Survey) – a follow-up to CS’s annual global hedge fund investor survey (2016 Annual Survey). See “Credit Suisse Survey Reveals Growing Demand by Hedge Fund Investors for Managed Accounts, Long-Only Funds and Alternative Mutual Funds” (Apr. 7, 2016). The Mid-Year Survey focuses on hedge fund investor redemptions and reallocations in the first half of 2016, future allocation plans and strategy preferences. Among the survey findings, CS found a slight decrease in redemptions from the 2016 Annual Survey, a wide distribution in the driving factors behind investor redemptions and a substantial disparity in the types of investment strategies preferred among investors based on their geographic location. CS also found that investors remain committed to hedge funds, with the majority intending to redeploy redemption proceeds. This article summarizes the key findings of the Mid-Year Survey. For coverage of previous CS investor surveys, see “Investor Appetite for Alternative Investment Vehicles and Strategy Preferences” (Aug. 27, 2015); “Factors in Institutional Investors’ Investment and Redemption Decisions, Appetite for Alternative UCITS and Anticipated 2015 Hedge Fund Investments by Strategy and Region” (Mar. 27, 2015); and “Allocation Preferences of Hedge Fund Investors, With Particular Attention on Preferences of Pension Funds and Insurance Companies” (Mar. 14, 2013).

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