Hedge funds have continued to bleed invested money amid mediocre returns, but they maintain a loyal following among asset allocators. What do these hedge fund devotees look for nowadays in this asset class?
Consulting firm Agecroft Partners polled 300 allocators to uncover what investments they see as the best bets in 2024, and which less so. These investors, wrote Don Steinbrugge, Agecroft’s founder and CEO, in a report on the findings, “provide good guidance on the strategies to which assets will flow.”
Right now, to be sure, investment dollars are flowing away from hedge fund coffers. In January, investors pulled an estimated $14.3 billion from hedge funds, the second biggest net outflow to begin a year since 2009, according to Nasdaq eVestment, the exchange’s research arm. For the first quarter this year, hedge funds were up 5.6%, less…