Institutional investors turn to arbitrage hedge funds

Written by Adam Cadle

30/11/2022

Twenty-eight per cent of professional investors believe institutional investors will dramatically increase allocations to arbitrage hedge funds, while 46% believe they will slightly increase them over the next 12 months, new research published by Managing Partners Group (MPG) has shown.

The focus of arbitrage hedge funds on simultaneously buying and selling assets in different markets to take advantage of price differences enabled them to generate profits and strong returns in volatile markets when executed at scale.

MPG’s research showed that the hedge fund asset class as a whole will see growth in institutional investment over the next 12 months – 17% of professional investors interviewed expect a dramatic increase in allocations and 58% a slight increase in allocations.

The research was conducted among 100 institutional investors and wealth managers in Switzerland, Germany, Italy, and the UK for Managing Partners Group by independent research agency PureProfile during September 2022.

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