Investors allocate to fewer hedge funds, push down fees

Under pressure to justify their hedge fund programmes, investors are cutting the number of hedge strategies they allocate to and negotiating lower fees, finds a global survey* by Deutsche Bank. This follows several years of underperformance by hedge funds overall and comes amid growing divergence of industry returns. The average survey respondent now allocates to 33 hedge funds, down from 42 three years ago, meaning competition is getting even fiercer for the best performers. …