RESEARCH
iCapital Investor Network Hedge Fund Survey

Jun 2016

Hedge Funds Survey CoverAs part of our regular survey series, we queried our investor network about their use of hedge funds, including current allocations, preferred structures, and top investment strategies of interest.

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KEY FINDINGS

• 8 out of 10 respondents currently invests in hedge funds

• 65% of respondents have a target allocation to hedge funds of 10% or more (20% target an allocation 20% or more)

• 80% of respondents are at 50% or more of their target allocation (35% are fully allocated)

• 77% invest directly into single-manager funds, while 41% go through feeders

• 79% say they are ‘somewhat’ or ‘very’ likely to invest in hedge funds over the next 12 months

• Top three investment strategies of interest:
  55% Multi-strategy
  54% Credit
  46% Long-short equity

• 83% would consider funds with lock-up periods;
  94% said 1-year or longer

• Top three reasons for not investing:
  63% performance
  56% fees
  50% liquidity

ABOUT THE RESPONDENTS

iCapital’s member network is comprised of approximately 1,500 wealthy individuals and families, family offices, and the key professionals they rely on for investment guidance such as registered investment advisors, financial planners, wealth managers, brokerage representatives and private bankers. Each member is a qualified purchaser or an advisor thereto, meeting one or more of the following criteria:

  • Individual investors own at least US$5 million of investable assets
  • Companies own or oversee at least US$25 million of investable assets
  • ABOUT THE RESEARCH

    We conduct regular pulse polls and research surveys with our network members in order to identify and understand the evolving priorities, preferences and concerns within the high-net-worth investing community.

    The survey was sent to the entire network via email and conducted using an online survey tool. Responses are voluntary and do not include the entire network. Member demographics and psychographics are substantially similar and may result in response bias. Totals may not foot due to rounding.


    IMPORTANT INFORMATION / DISCLAIMER

    These materials are for informational purposes only and are not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents which will contain information about each fund’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein. This material does not take into account the particular investment objectives, restrictions or financial, legal or tax situation of any specific investor.

    Past performance is not indicative of future results. Products sold by iCapital are generally private placements that are sold only to qualified clients through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated thereunder (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the funds described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described may involve long lock-ups and do not provide investors with liquidity. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

    Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA or SIPC have endorsed the entities, products or services discussed herein.

    iCapital is a registered trademark of Institutional Capital Network, Inc. Additional information is available upon request.