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Amy Bensted, head of hedge fund products at Preqin, said: "This is an encouraging start to 2013 for institutional investors, which have cited strong performance as a key requirement that needs to be met in the year ahead. More than half of all investors looking to make new investments in funds of hedge funds over the next 12 months are pension funds, with their large ticket sizes and long-term investment horizons."
However, Preqin also stressed that, even though the asset class had performed well in recent years, the results over the last three year and five-year periods remained sluggish, standing at 1.8 per cent and -0.25 per cent, respectively. Institutional investors have therefore been disengaging from the asset class since the 2008 financial crisis, leading to a "significant" decline in total assets under management at FoHFs.
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