Reuters – Americans are betting that hedge funds will make them rich even at a time when these once high-flying portfolios are lagging behind the broader market.
Research firm Morningstar Inc. polled 600 advisers in August and found that 65 percent of them expect more than double-digit growth in alternative investments, which include hedge funds; and 67 percent of them report that more than 10 percent of their clients are already using alternative investments.
“We were surprised to find that the majority of advisers expect double-digit growth in alternative assets under management every year for the next five years,” said Steve Deutsch, director of separate accounts and managed investments at Morningstar.
Loosely regulated hedge funds earned a reputation for delivering huge returns to wealthy investors and pension funds a few years ago. Now financial advisers who help a broad swath of Americans invest their savings want in, too.
