Big Growth Opportunities Await Hedge Funds in 2012

2012 may be a good year for hedge funds trying to raise more capital.  After heavy degrees of scrutiny and after years of performance questions, hedge funds may attract another $80 billion of assets this year.  A report from Barclays puts it as high as potentially $400 billion.

The firm conducted a survey of 165 investors and also had one-on-one investor interviews, surveying managers with a cumulative $4 trillion in assets unde management with about a half-trillion dollars allocated to hedge funds.  More than half of these surveyed plan to boost hedge fund allocations in 2012.

A few takeaways… smaller managers may get more funds, 60% of those surveyed plan to add new managers into their portfolio mix, and liquidity matters as no lock-up period or a one-year lock-up period is sought most.

Full data from Barclays Capital via its report “The Money Trail.”