Nordic investors’ allocations to hedge funds are expected to grow further during 2011, according to SEB’s Nordic Hedge Fund Investor Survey 2011. Some 32 % of the investors are expecting to increase their allocations to hedge funds, while most investors have not yet reached their maximum allocation limits to the asset class.
The survey also found that Nordic investors seem to appreciate the risk-reducing effect a Market Neutral fund can have on the total portfolio, and that investors seem to have the largest appetite for funds with AUM levels at USD250m-USD1bn.
According to the survey, Nordic hedge fund investors are primarily concerned with fund strategy, leaving the legal structure as a secondary issue, while they are also not that sensitive to fee structures. The belief seem to be that proper alpha is worth paying for in a world where beta is almost for free.
Finally, the survey reveals that the Nordic investor community is optimistic when it comes to hedge fund investments and investors seek a broad variety of hedge fund strategies.