The Alternative Investment Management Association (AIMA), the global hedge fund association, and the CAIA Association, the global leader in alternative investment education, have jointly published the first of a series of educational papers about hedge funds for pension fund trustees and other fiduciaries at institutional investors.
The paper, titled “The Way Ahead: Helping trustees navigate the hedge fund sector”, sets out to give practical guidance about how existing investors have managed issues and challenges associated with their hedge fund investments as well as detailing the advantages of allocating to hedge funds.
Among the findings of the first paper:
• Roughly one in every four dollars managed by the global hedge fund industry today – well over $700 billion in total – is invested by public and private pension plans, and this proportion is increasing.
• Uncorrelated and risk-adjusted returns are among the most important objectives cited by investors who invest in hedge funds.
• Investors have earned a combined $1.5 trillion after fees from hedge funds in the last 10 years.
The paper, “The Way Ahead: Helping trustees navigate the hedge fund sector”, can be downloaded here.