Mellon: Retail investors showing “a lot of interest” in what institutions are doing with hedge funds
Feb 27th, 2007 | Filed under: Hedge Fund Industry Trends
Hedge Fund Copycats Catch Mutual Fund Buyers as Returns Dwindle
By: Danielle Kost & David Clarke, Bloomberg News
Published: February 26, 2007
There is a common belief in the asset management community that retail investors are “return chasers” compared to institutions. In other words, it’s generally tough to convince a retail investor that a loser fund is actually a great investment because of its diversification properties. The unfortunate headline to this story makes this point crystal clear.
But there are encouraging signs that individual investors are beginning to think more holistically about their portfolios. This article is another in a string of recent articles about “hedged mutual funds”. Although the headline suggests investors should indeed chase hedge fund returns, asset growth in this sector seems to suggest that some investors are willing to hang in during sub-S&P 500 years in order to benefit from hedge funds’ lack of market correlation (or negative correlation) during down markets.
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[…] Mellon: Retail investors showing “a lot of interest†in what institutions are doing with hedge funds […]