Hedge funds expect strong inflows over next two years

U.S.-based hedge funds are predicting strong inflows over the next two years, with 86% of this sector anticipating a rise in the level of investment into hedge funds and 42% predicting a dramatic rise.

According to a new study from quant technologies provider SigTech, 92% of hedge funds surveyed ”“ who collectively have $74.7 billion in assets under managements ”“ anticipate the number of quantitative investment strategies launched will increase by 2023, with 34% expecting a dramatic rise. Furthermore, 78% of those surveyed expected levels of transparency in the quant market to improve, and 38% believed this will be a driver for a significant increase in investment flows into this market segment.

“Our research shows a strong sense of optimism among U.S. hedge fund managers, with the majority expecting strong inflows and more strategies for investors to choose from,” said Andrew Liddle, chief operating officer at SigTech. “This helps explain why nine out of 10 hedge funds interviewed believe the overall number of quant fund managers will increase over the next five years.”