Global institutional investors are gung-ho about hedge funds going into the second half of 2014, Credit Suisse reported Thursday.
Ninety-seven percent of investors in Credit Suisse’s new survey said they planned to be highly active in making allocations to hedge funds during the remainder of this year.
This compared favorably with 85% who said they had already made allocations in the first half.
Investors’ favorable attitude appeared not to be dented by hedge funds’ shaky performance at the start of the year that had strengthened by the end of the first half, according to data released Wednesday by Preqin.
The Credit Suisse survey polled 285 global institutional investors representing $544 billion in hedge fund investment, including funds of funds, family offices, consultants, endowments and foundations, private banks, pension funds and insurance companies.
Some 57% of responses came from the Americas, while 34% came from Europe, the Middle East and Africa and 9% came from Asia/Pacific.
“The high percentage of respondents with strategic intention to actively allocate to hedge funds in the second half of this year could reflect a prolonged due diligence process, in response to high levels of market volatility back in March/April,” Robert Leonard, managing director and global head of capital services at Credit Suisse, said in a statement.
“Regardless, it does seem clear that institutional investors remain committed to hedge funds, as many see current equity and bond market valuations as high and are looking to further diversify their portfolios.”
Event-driven strategies were favored by 56% of investors, and equity long/short strategies, particularly those with a fundamental approach, by 41%.
This finding was consistent with the CS Annual Global Hedge Fund Investor Survey published in March, when investors also ranked those strategies at the top of their lists.
It also underlined the ongoing rotation of capital by investors from fixed income into equities, Credit Suisse said in a statement.