What end investors want

Why CFOs should stop mistrusting hedge funds

Although hedge funds are in an advantageous position in offering financing, they can only keep doing so if their end investors are willing to put money into the strategies. In a survey of hedge fund investors by Euromoney, the majority said they were positive on financing strategies, and that their returns had been consistent. They pointed out, though, that there are certain requirements that managers need to fulfil. One end investor says: “We’ve seen funds that do a good job of providing finance, and it has the potential to offer a great source of uncorrelated alpha if done right.