Discretionary Global Macro Is Again Top Strategy For Institutional Investors


Societe Generale’s Prime Services unit’s most recent poll of global investors, conducted in the final quarter of 2023, surveyed pensions, endowments, funds of funds and other institutional investors about their hedge fund allocation priorities over the next year. Nearly 370 investment firms globally contributed their investment preferences.

The survey results offer insights into the thinking of a broad group of asset allocators during a time of continued economic and geopolitical uncertainty, and as the U.S. Fed and other central banks look to end their inflation fighting rate hikes.

“The top strategy among institutional investors for 2024 is Discretionary Global Macro,” said David Regan, CFA, CDDA, Director of Capital Consulting at Societe Generale. “This is the fifth survey running that asset allocators have chosen this as the strategy most likely to be increased in their portfolio over the next 12 months.” 

Discretionary global macro maintained its position as the most cited strategy, with roughly 50% of respondents planning allocations in the next year, down only slightly from the 51% from Spring 2023. The strategy has been a perennial favorite, topping the priority list in every survey report since the inception of the series dating back to 2020.

Two other strategies, Equity Long/Short and Equity Market Neutral, retained their ranking within the top five as compared with the Spring 2023 survey. 

The two largest changes to the upside in strategy interest were Commodities (+11%) and Equity Long/Short (+5%) compared to the previous report.

The survey also found that other considerations, like ESG and D&I continue to be relevant themes for investors.

“These insights show the continued interest in adding diversifying strategies to institutional investment portfolios. This is corroborated by the significant number of introductions our global team has made for these strategies over the time period covered by the survey and starting this new year,” said Regan.

For more information about the survey, please contact: PRM.CapitalConsulting@sgcib.com


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