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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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.<\/p>\n