Evolution Of Hedge Fund Investors & Beneficiaries: January 2013
- Hedge funds began as a wealth management vehicle for individuals and families. They evolved into an investment tool utilized by institutional investors, like pension plans and foundations, to help meet their financial obligations.
- The evolution began in the 1980s, when college and university endowments began partnering with alternative investments-including hedge funds to provide reliable returns overtime. These returns help fund: 1) Scholarships,
expanding access to quality higher education; 2) Cutting-edge research; 3) Infrastructure improvements.
- Corporate and public pensions began partnering with hedge funds. These partnerships help strengthen retirement security for their millions of workers and retirees around the world.
- Philanthropic foundations also began partnering with hedge funds to help fund: 1) Economic development projects; 2) Education grants for students of every age; 3) Health-related research and programs; 4) Sustainable development
- Hedge Funds' investor base has evolved over the years. Today, 65% of global hedge fund assets come from institutional investors such as pensions, endowments and foundations. This evolution has transformed - and expanded - the
universe of millions of individuals benefitting from hedge funds.
- Institutions will continue seeking ways to diversify their investment portfolios to produce reliable returns and meet their financial obligations. Hedge funds can - and should - be part of the solution to provide millions of workers
and retirees with financial stability.
* Preqin Special Report: Hedge Funds October 2012 | Managed Funds Association - Managefunds.org.