The biggest worry for allocators to hedge funds is crowding, according to a new Bank of America survey.
AdvertisementAllocators are growing more worried about crowding at hedge funds.
The survey — which spoke to 160 allocators with roughly $680 billion invested in around 4,300 hedge funds globally — found that the biggest hedge fund managers in the industry are still gobbling assets and market share despite their investors bickering about costs.
This flavor of hedge fund brought in $10 billion in net flows in 2024's first six months, and the average multimanager firm runs $1.7 billion.
Despite this, allocators, paradoxically, have grown even more concerned about crowding risks in their hedge fund portfolios.
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Organizations:
Bank of America, Service, Citadel