Institutional investors based in Asia-Pacific have allocated more capital to <a href="http://www.valuewalk.com/2017/07/balyasny-asset-management-2/">hedge funds</a> in recent years, reaching a record $202bn as of the end of 2016, up from $180bn a year earlier. This is at odds with allocation trends in North America and Europe, which in 2016 saw a greater proportion of investors indicate they were seeking to draw back from hedge funds than were looking to increase their investments. The majority of capital invested in hedge funds by Asia-Pacific-based investors comes from sovereign wealth funds, while several investors, particularly in South Korea, have made their maiden investments in the asset class in 2016.