Hedge Funds Peak Sovereign Wealth Fund Interest
The short-lived evolution of the hedge fund industry in the past twenty years has been a boon to hedge fund managers. From being a private pool of high net worth capital to becoming an asset class suitable for institutional capital, the industry and its participants have augmented greatly in assets and wealth. From an investor viewpoint, hedge funds are an expensive asset class to invest in. Despite the setback in 2008, hedge funds remain a key interest for a swath of sovereign wealth funds and public investors. Generally speaking, sovereign wealth funds like the Abu Dhabi Investment Authority (ADIA) are long-term in nature; this is a powerful attribute for an investor in hedge funds.
Hedge funds that follow a long-term strategy can benefit from having sovereign funds as investors.
2013 and Beyond
The type of sovereign wealth fund to invest in hedge funds includes one where capital preservation is not the highest priority. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]