Institutional Investment in Hedge Funds: Evolving Investor Portfolio Construction Drives Product ConvergenceI3
Key Findings 4Methodology 6Introduction 7Section I: Hedge Funds Become a Part of Institutional Portfolios 8Section II: A New Risk-Based Approach to 13Portfolio Construction EmergesSection III: Forecasts Show Institutions Poised to Allocate a 26New Wave of Capital to Hedge FundsSection IV: Investment Managers Respond to the Shifting Environment 35Section V: Asset Managers Face Challenges in Extending Their Product Suite 42Section VI: Hedge Funds Reposition to Capture New Opportunities 48Section VII: Accessing Investors Requires More Nuance 59and Interaction With IntermediariesConclusion 66Appendix 67
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