The outlook for the global hedge fund industry remains positive, even as recent returns have disappointed, says research by Credit Suisse. Its latest annual hedge fund investor survey indicates that institutional investors expect a 3.5 per cent increase in fund inflows in 2017 with 87 per cent of investors planning to maintain, or increase, their hedge fund exposures next year. Yet, only 30 per cent of investors say their hedge fund portfolios met or exceeded their return expectations, down from 45 per cent last year. However, for 2017, they are targeting annual returns of 7.2 per cent for their hedge fund portfolios. The most popular strategies in the year ahead are expected to be global macro-discretionary, fixed income arbitrage/relative value, and emerging markets equity.
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