(Free Pressrelease) In Infovest21 is just-released marketer sentiment survey, one-half of the hedge fund marketers surveyed are "somewhat optimistic" for the hedge fund/funds of industry for the next 12 months compared with last quarter when 73% were “somewhat optimistic. In the first quarter of 2010, 90% were "somewhat optimistic." None of the marketers are "very optimistic" for the industry compared with 27% last quarter and 10% in the first quarter of 2010.

Only 12% of the marketers rate the current flow of institutional assets into hedge funds as "somewhat strong" compared with last quarter when two-thirds had that sentiment. 38% of the marketers said institutional flows were “neutral” this quarter while another 38% said it was “somewhat weak.” Last quarter, 18% of the marketers said institutional asset flow was neutral and 9% said it was “somewhat weak.”

When asked about UCITS, over 60% of the marketers said the structure has problems and not the panacea that a lot of people think it is. One-quarter of the marketers felt UCITS are a good vehicle that helps broaden the investor base. The remainder felt the structure was not applicable to US managers.

When asked about managed accounts, one-half said they are “somewhat important” in investor selection of managers while another 12% said they were “very important.” Almost 40% of the marketers said they were of “neutral importance.”

Strategies of interest

With 1 representing the highest ranking and 15 the lowest, global macro reclaimed the top spot with a score of 3.0 as long/short fell to fourth spot with a score of 4.2

Lois Peltz, president of Infovest21, observed, “Strategies having a higher score this quarter i.e. attracting more investor interest were multi-strategy, fixed income arbitrage and convertible arbitrage. Meanwhile, long/short equity, emerging markets, statistical arbitrage, merger arbitrage, asset based lending, short biased and activist managers had lower scores this quarter.

Scores for global macro, managed futures, market neutral, distressed and energy were about unchanged from last quarter. Activist was the lowest ranked strategy - a spot previously held by short-biased funds.”

Strategy
Score

Global macro
3.0

Multi-strategy
3.2

Fixed income arbitrage
4.0

Long/short
4.2

Managed futures
4.4

Market neutral
5.0

Distressed
5.4

Energy
6.0

Emerging markets
6.2

Convertible arbitrage
7.0

Statistical arbitrage
8.5

Merger arbitrage
9.0

Asset based lending
9.6

Short biased
13.75

Activist
14.25

The quarterly marketer sentiment survey, which appears in the June issue of Investor Focus, also includes marketers' views on specific investor categories such as:

? return expectations

? concerns

? geographic interest

Infovest21 is an information services company for the hedge fund industry. News, manager interviews, white papers, surveys and industry events provide the qualified investor, the institutional investor, and the alternative investment manager with customized information that will assist each in a time and cost-effective manner. Efficient delivery of information, cutting-edge technology and a niche focus are the themes to the innovative services provided.

For additional information:
Lois Peltz, president
Infovest21
(212)686-6189
www.infovest21.com