Falling equities drives pensions into hedge funds' arms

Falling equity markets have fuelled the growth in European pension funds' allocation to hedge funds, but growth in this area still lags allocations to other alternative classes such as property, according to a recent study by Mercer Investment Consulting.

Mercer's report of 180 managers from 18 countries found hedge funds were most readily adopted by Swiss investors, although their use was more prevalent among high net worth investors than pension funds. However, European pension funds still con