Alternative Investment Survey by Deutsche Bank

deutsche bank

In a groundbreaking announcement, the Deutsche Bank introduced a comprehensive survey covering hedge investment trends and future investment opportunities. Due to an ever rising investment trend, hedge investments are likely to increase to $3 trillion owing to the increasing inflow of new investments, mostly from traditional institutional investors.

Hedge trends are likely to continue as the rising trend in the bigger asset management industry.  Forecasts are forthcoming, showing considerable promise in the hedge industry. Anita Names, head of Hedge Fund Capital Group at the Deutsche Bank, is confident the new rise brings few advantages to the already prospering hedge fund industry. Having seen the worst hedge crisis in 2007-2008, now is the time to invest in hedge funds as the market is embracing the bullish trend which is likely to continue for a few years.

As an ideal market to invest in, investors and consumers are confident of the positive indicators. Additionally, the weighted average ratio, which was 9.2% in 2013, almost reached 9.4% in 2014. Financial forecasts are predicting an increase of 0.8% to 1.1% for 2015, as the positive trend continues.

More Commitment Means More Investment 

Furthermore, the Deutsche Bank advisory underlined the significant amount poured into investment funds, increasing their contribution in the market, thus bringing more consumers into the mainstream. Further, the Deutsche Bank survey highlights the fact that 80% clients showed a positive trend in hedge investment trend, which is a major boost to the already prospering hedge investment industry. By 2014, the investor confidence is estimated to grow to 82%. More investments have resulted in higher dividends, eventually raising consumer interest and overall investment.

Worth A Risk

Institutional investors are moving from the traditional standalone hedge class asset management to the rather riskier risk-based investment approach. The reason is the ever-increasing investment recorded each quarter, breaking previous highs. What is of concern is the possibility of too much money being invested and has to be administered. Deutsche Bank advisory takes a critical look at the possibility of inflated investment figures, as was the case during the 2008 recession.

To reduce this, institutional investors are to report gross investments each quarter to satisfy investors and consumers alike. In a growing market, inflation is always around the corner, and hanging above the calculated figures is the possibility of false figures being reported, causing a financial bubble in the industry. On the other hand, deflation is equally harmful as it reduces investor confidence which could dent a prospering industry.