The Alternative Investment Management Association releases paper to help institutions invest in hedge funds
The increasing amount of assets allocated to the hedge fund industry by institutional investors has been underlined by the release of a new guide.
The paper, produced by the Alternative Investment Management Association (AIMA), the global hedge fund association, helps institutions understand what to expect when investing in hedge funds.
‘In light of the ongoing ‘institutionalization’ of the hedge fund industry and the growth of institutional investor participation, we hope this paper, authored by some of the most influential investors and advisers in the industry, will be a useful reference to both investment managers and investors,’ the guide notes in the foreword.
Institutional investors now provide the absolute majority of assets managed by hedge funds, adds the paper.
The guide covers five areas – governance, risk, investments, capital and operations – and is co-written by investment managers including Kurt Silberstein, who overseas CalPERS hedge fund program, and Michelle McGregor Smith, CEO of British Airways Pension Investment Management.
The hedge fund industry has bounced back strongly following a significant decline in assets under management during the financial crisis.
Click here to download AIMA’s guide.
