Fri, Jul 31, 2015
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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  3. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  4. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  5. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

 

banner