When It Comes to Hedge Funds, Sovereign Investors Tread Lightly

February 10, 2015 by Loch Adamson

Compared to other institutional investors, SWFs allocate a relatively small portion of assets to hedge funds. Is that a bad thing?
Why the sovereign wealth fund parsimony when it comes to hedge funds? It reflects a combination of factors.
SWFs sinking large sums into a #hedgefund, some feel, might as well wear signs reading “Dumb Money”
  • Print
  • Please login
Left to right: Hedge fund directors George Soros, James Simons, John Alfred Paulson, Philip Falcone and Kenneth Griffin, testifying on Capitol Hill in Washington November 13, 2008. Credit: Reuters/Jonathan Ernst Compared to other institutional investors, like endowments, sovereign wealth funds allocate a relatively small portion of their assets to hedge funds. Is that a bad thing? When it comes to investing in hedge funds, state-owned investors keep their purse strings pulled tight. That’s the key takeaway from a new paper looking at the mean allocation to hedge funds by a variety of institutional investor classes from 2012–’14. The paper, published by the London-based Alternative Investment Management Association (AIMA), a hedge fund trade group, and the Chartered Alternative Investment Analyst Association (CAIA Association) of Amherst, Massachusetts, a non-profit education organization, found sovereign wealth funds invested just 7 percent of their assets to hedge funds in 2014. The figure has…

Sign-up for your free account to read this article

Get Started

Already have an account?
 

Log In Here

Updated Fund Profiles

Our market-leading fund profile library provides unrivalled analysis of more than 90 government and sovereign funds.

Register to read fund profiles

Recent SWF Investments

Search the database of direct investments and mandates by fund, industry and target market to identify past deals that match your requirements. Access over $1 trillion worth of transactions dating back to the 1960s.

Register to explore our data

Latest SWF News

Sovereign Wealth Center makes staying abreast of the most recent government and sovereign fund events easy. Our team undertakes a thorough review of global news feeds every morning and distills salient points.

Register for the latest SWF news
Join the discussion:

To be able to print this content,
you must be a subscriber

For details on your subscription options,
please contact: