Wealthy investors in the US and Asia are shunning US hedge funds in favor of Europe and the Middle East, according to a Bank of America survey. Half of those who planned to invest in US hedge funds have changed their minds, with European allocations exceeding expectations by 8%.

US and Asian investors are driving the shift towards hedge funds based in Europe and the Middle East, where large funds are setting up in Abu Dhabi and Dubai. Major funds managing over $10 billion are favoring separately managed accounts, with $37 billion flowing into hedge funds this year from pension funds, sovereign wealth funds, and family offices.

While some hedge funds offer quick returns, others lock up investor money for up to five years. In public markets, money is flowing back into US equity funds, with weekly flows hitting a year-to-date high of nearly $58 billion.

Read more at Yahoo Finance: US, Asian investors turn to European and MidEast hedge funds, BofA survey shows