Forty one per cent of Nordic investors are increasing their allocations to hedge funds, according to SEB’s Nordic Hedge Fund Investor Survey.
During 2009, 68 per cent of all investments were made in non-Nordic hedge funds.
Long/short equity and global macro are the strategies that the investors expect to perform the best during 2010.
The most common way to find hedge funds is through capital introduction teams, used by 76 per cent of the investors.
Investors that have mandate to allocate zero to 30 per cent of their total assets represent 80 per cent of the investors, excluding fund of hedge funds.
Most Nordic investors are confident in their own ability to pick hedge funds and do not use external advisers when investing.
When meeting a new hedge fund, the investor invests five per cent of the times in average.
According to the survey, most investors want at least one year of track record before they invest.
Thirty one per cent of the investors do not require funds to have a minimum asset size before they invest and 56 per cent accept lock-ups if the fund’s strategy so requires.
Most investors have not changed their transparency requirements after the turbulence of 2008.