REUTERS/Carlo Allegri/File Photo Acquire Licensing RightsLONDON, Oct 11 (Reuters) - Investors expect hedge funds to produce higher returns with the prospect of interest rates staying higher for longer, a BNP Paribas [RIC:RIC:BNPPL.UL] investor survey showed on Wednesday.
Investors now expect hedge funds to return an average of 9.75% annually within an average of 19 months, up from 6.85%, according to the survey.
However, hedge funds themselves think this will take longer, up to 29 months, the survey showed.
BNP Paribas said historical evidence shows hedge funds tend to perform well in higher and stable interest rate environments and less so when rates are lower.
BNP Capital Introduction Group surveyed 82 hedge fund managers in what it called the "summer" of 2023.
Persons:
Carlo Allegri, Michael Oliver Weinberg, “, ”, Weinberg, Nell Mackenzie, Dhara Ranasinghe, Kirsten Donovan
Organizations:
New York Stock, REUTERS, BNP, RIC, Investors, Group, Thomson
Locations:
Manhattan, New York City , New York, U.S