Small Hedge Funds Catch the Eye of Pension Programs

May 5, 2011 James Heinsman Hedge Fund News

Established investors have been taking more notice of smaller hedge funds recently.

Doug Rothschild, managing director at Agecroft Partners said “Over the next ten years we will see a significant increase in the percentage of their hedge fund portfolio away from the largest managers to small and mid-sized managers.”

Rothschild and his company feel the change will occur as a result of the “nimble”-ness of smaller hedge fund managers. Another reason may be because smaller hedge funds have been bringing in more income. According to Hedge Fund Research, hedge funds that manage less than $50 million return around 13.1%, while $1 billion-plus funds return 11.62%.

It is certainly not surprising that pensions such as the New Jersey Division of Investment and the California Public Employees’ Retirement System are keeping an eye on smaller hedge funds. Agecroft Partners predicts that pensions will continue to shift in this direction.

Agecroft Partners, Doug Rothschild, Hedge Funds, Pension, Small Hedge Funds,

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