According to a Bank of America (BofA) survey, wealthy investors in the US and Asia have canceled their plans to invest in US hedge funds this year and shifted their capital to Europe and the Middle East.
The survey, which included 263 participants and represented approximately $840 billion in assets, showed that allocations to European funds were 8% higher than expected. Abu Dhabi and Dubai, in particular, have become the new hubs for global hedge funds in recent years.According to BofA data, pension funds, sovereign wealth funds, and family offices transferred $37 billion to hedge funds this year. This was the largest inflow the sector has seen since 2016.
As investor interest increases, some funds are offering daily liquidity, while others can lock up capital for up to five years.
However, strong inflows are also resuming into US equity funds in public markets; reaching a year-high of $58 billion in the last week.
