Sat, Nov 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund providers not ready to count fund of funds out of the game

Wednesday, September 22, 2010

From Kirsten Bischoff, Opalesque New York:

There were 54 closures of fund of hedge funds (FoHF) during the second quarter of 2010 according to Hedge Fund Research (Source). While this number remains too large for comfort (it works out to approximately 4 liquidations per week), the slowing pace offers a hint of relief compared to the overall number of FoHF (800) that have vanished in the past two years.

"Hedge funds need fund of funds," says Don Steinbrugge Managing Partner at marketing firm Agecroft Partners. "Fund of funds tend to be strong investors into small and mid-sized hedge funds, whereas many other large, institutional investors at this point are still flocking to the biggest, most established names."

While multiple voices continue to sound the death knell for FoHF, the slowdown of liquidations may indicate that this area of the market is finally stabilizing. In fact, out of the 800 number floated by HFR, only 500 of those FoHFs that have disappeared have been liquidations - the rest may be attributed to mergers and acquisitions as the industry contracted (a trend seen all across the asset management industry).

"There was a downturn with fund of funds since 2008, but from our standpoint we d......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some

  3. North America - FATCA leads 75% of U.S. expats to consider dropping citizenship[more]

    From International-adviser.com: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA). The findings, which were revealed in a survey by deVere, come alongside the news th

  4. New app allows asset managers easy interaction with portfolios, securities, holdings, transaction details[more]

    Komfie Manalo, Opalesque Asia: Global financial services software company SS&C Technologies Holdings has launched Explorer, a powerful data visualization and analysis tool that turns critical investment data into meaningful information. Explore

  5. Opalesque Exclusive: Mariner’s new healthcare mandate applies strategic approach across pharmaceutical and biotech sectors[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A team of two was hired in February this year t