Deutsche Survey Shows Hedge Funds Gaining In Popularity

by Carla Johnson, Investors Offshore, London

22 January 2003

A new survey of 376 hedge fund investors by Deutsche Bank’s Equity Prime Services Group has found that they plan to increase their involvement in alternative investments this year.

John Dyment, global head of capital introduction services at Deutsche Bank, said that the investors were representative of a total of US$350bn of alternative investment: “This survey provides a particularly comprehensive analysis of alternative investor characteristics and behaviour as it draws upon the extensive relationships that Deutsche Bank maintains with these investors worldwide.”

Investors indicated a general tendency to move towards a greater concentration on European and Asian rather than US assets. There was also a trend away from long-only assets (ie equity) towards long-short, multi-strategy, macro, distressed debt, and CTA strategies.

Deutsche Bank said it took the the survey to represent at least half the total assets presently invested in hedge funds, and believes it to be one of the largest surveys ever conducted on the hedge fund marketplace.

Deutsche Bank's Equity Prime Services group says it has focused on the needs of the alternative investment community by creating a special program for hedge fund clients which moves beyond traditional prime brokerage activities. Its three core product areas are structured equity finance, prime brokerage and stock loans.

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