AlphaMetrix Survey: Majority of Investors in Hedge Funds, CTAs and Private Equity Plan to Increase Allocations in 2012

CHICAGO--(BUSINESS WIRE)--AlphaMetrix LLC, founder and operator of the AlphaMetrix Global Marketplace (AGM), the leading secure online marketplace for private investments, today released results of a survey that found a majority of investors in hedge funds, commodity trading advisors and private equity funds expect to increase their allocations to those private investments in 2012.

In response to a survey given to investors and private investment managers, a total of 65 percent of investors said they intend to increase their allocations to private investments by some degree this year, with 25 percent of participants planning to raise their allocations significantly. Further, 35 percent intend to leave their existing allocations unchanged.

Respondents answered a range of questions throughout the AlphaMetrix 2012 Miami Summit, a leading networking conference for the private investment industry. Attendees from more than 250 managers representing more than $610 billion in assets under management and over 400 investors participated in the Summit. Overall, more than 200 total investors and managers participated in the survey.

Other highlights from the survey included:

Market Expectations

• Some 41 percent of private investment managers and investors believe equities will be the best-performing asset class in 2012, while 26 percent expect commodities to outperform this year.

• The majority of respondents expect this year’s market volatility to remain at or above levels seen in 2011: This includes 49 percent who expect volatility in 2012 to be similar to last year, and 14 percent who expect much higher volatility in 2012. Thirty percent of managers and investors responding expected 2012 to see a decrease in volatility relative to 2011.

Eurozone Outlook

• Half of all survey participants believe that the European Union’s periphery nations will break off, while the core nations will remain part of the Eurozone; 8 percent expect the Eurozone countries to revert fully to their respective national currencies.

• Nearly 80 percent of respondents expect at least one country in Europe to default on its debt in 2012. Of those investors and managers who named a specific country, 80 percent expect Greece to default this year.

About AlphaMetrix

AlphaMetrix is the founder and operator of the AlphaMetrix Global Marketplace (AGM), the world’s leading, secure online marketplace for researching, tracking and analyzing information about hedge fund managers, CTAs and private equity funds. Through the Marketplace, the firm services more than $6.9 billion in assets¹ and provides extensive due diligence, real-time transparency and 24-hour risk monitoring. The AlphaMetrix Global Marketplace connects over 68,000 industry participants online and has a growing membership of 36,000 pre-qualified investors.

If you’d like more information, please contact AlphaMetrix Client Relations at [e-mail] or [phone]. https://www.alphametrix.com/

¹ As of January 2012.

The value for “assets under management” currently includes assets from managed accounts, pooled managed funds, transparent funds, and assets under administration by AlphaMetrix and its affiliates. This value may change at any time and without notice. Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment products can be volatile. An investor could lose all or a substantial amount of his or her investment. Alternative investment products often execute a substantial portion of their trades on non-US exchanges. Investing in non-U.S. markets may entail risks that differ from those associated with investments in U.S. markets.