Hedge funds and non-hedge fund institutional investors: Traditional buy side hobbled by lack of research

Integrity surveyed 43 directors at US-based hedge funds and non-hedge fund institutional investors.

The results reveal that non-hedge fund firms rely significantly on forensic analysis, which includes earnings quality forecasts. More than 50% of non-hedge funds respondents said they rely on such research, compared with just 35% of hedge fund respondents.

Hedge funds put greater emphasis on using “expert networks” as part of their research methodology. Thirty percent of hedge funds surveyed said they used such a method compared with just 4% of non-hedge fund respondents.