The number of institutional investors planning to reduce their portfolio exposure to hedge funds is on the increase, according to alternative investment data and insight provider Preqin's Investor Outlook H2 2024 report.

Preqin's survey results reveal that 35% of investors intend to reduce their allocations to hedge funds, in the 12 months from June 2024, up from 26% who said they were planning on reducing allocations during the 12 months from June 2023.

Some 18% of respondents indicated that they planned to add to their current positions, while 47% planned to stay put with their allocations.

For those investors that do plan on allocating though, 68% are looking to defer those decisions until 2025, while 40% of respondents do not plan to put new money into hedge funds until the second half of 2025 or later, suggesting a "wait-and-see" approach, according to Preqin.