Wealthy investors in the United States and Asia have cancelled plans to put money into U.S. hedge funds this year, while increasing their exposure to Europe and the Middle East, according to a Bank of America survey seen by Reuters on Thursday.
Half of the allocators who told Bank of America last year they would invest in U.S. hedge funds have now ditched these plans, according to the survey.
The report, which canvassed 263 respondents, representing around $840 billion of industry cash, showed European allocations exceeded expectations by 8%, based on the bank's data, which compared surveys done during the fourth quarter of last year to its most recent investor survey carried out this August and September.
U.S. and Asian investors led the move into hedge funds based in Europe and the Middle East, where several global hedge funds have set up shop in Abu Dhabi and Dubai in recent years.
The biggest of these, which manage over $10 billion, favoured deals with hedge funds called separately managed accounts - special investment vehicles that are created for a single allocator.
The report, which canvassed 263 respondents, representing around $840 billion of industry cash, showed European allocations exceeded expectations by 8%, based on the bank's data, which compared surveys done during the fourth quarter of last year to its most recent investor survey carried out this August and September.
U.S. and Asian investors led the move into hedge funds based in Europe and the Middle East, where several global hedge funds have set up shop in Abu Dhabi and Dubai in recent years.
The biggest of these, which manage over $10 billion, favoured deals with hedge funds called separately managed accounts - special investment vehicles that are created for a single allocator.
