Fri, May 29, 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. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  2. Institutions - Institutional investors turn to real estate, planes, Assets at Bostonís five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  3. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  4. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

  5. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

 

banner