Thirty-nine per cent of European institutional investors are considering increasing their allocations to liquid alternatives over the next 12 to 24 months, new research published by Cerulli has revealed.
The 207 European institutional investors making up the research said their particular focus is on long/short equity, long/short credit, managed futures, and multistrategy products.
Furthermore, Cerulli found that nearly two-fifths (39%) of asset owners in Europe that already allocate to hedge funds expect to increase their investments over the coming 12 months.
“Overall, the outlook for hedge funds in 2023 is more positive than it has been in recent years, thanks to rising interest rates and an uptick in volatility creating more opportunities. Sophisticated investors understand that now it is a good time to capture market dislocations and asset mispricing,” Justina Deveikyte, director, European institutional asset management research, said.