By Lydia Tomkiw

Stronger hedge fund performance this year has sparked a slight boost in investor return expectations, but many of them are still not fully satisfied with the results so far as they keep an eye turned toward worries about the equity market cycle, according to a new survey.

Only having 9% of investors report that hedge funds are exceeding expectations is not surprising, says Stuart Blair, director of research at Canterbury Consulting. Investors need to spend more time on a high level understanding what a strategy can do for them, he adds.

“I think most folks have taken the wrong view of what hedge funds can realistically do in their portfolio,” he says. “I think folks would be well advised to look at a high level and then get into details on the [individual] hedge funds.”

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