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Private Sector Pension Hedge Fund Allocation Trends

Amongst institutional investors which allocate $1bn+ to hedge funds, private pensions have become the most numerous of that group, overtaking public pension funds and sovereign wealth funds, but overall allocations are getting smaller and anecdotal reports suggest investors are instead reducing and eliminating their exposure to hedge funds. Data from Preqin shows that investors which write tickets of more than $1bn have seen their total commitments to hedge fund strategies rise 11% in the last year. This group of investors is typically labelled the ‘Billion Dollar Club’ and has grown to $889bn at the end of May, accounting for 25% of all capital...