Increasing numbers of pension funds in Europe are making the choice not to use hedge funds in the region since returns have dropped off, according to a report released by Connecticut-based Greenwich Associates.
The report notes 8% of European institutions plan to use hedge funds as vehicles for investment this year, compared with 19% in 2004. The proportion planning to hire a hedge fund manager has dropped from 23% to 8%.
Patrick McCoy, head of investment consulting at KPMG, says that after investors learn more detail about hedge funds, they tend to take a step back and reconsider.
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