Sat, Mar 17, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Outflows from fund of funds continue unabated

Wednesday, June 26, 2013

Peter Laurelli
Bailey McCann, Opalesque New York:

Redemptions from fund of funds continue to be elevated and have persisted for eight quarters raising questions about the long term viability of the structure, as institutions and other investors find they have the qualifications to invest in alternatives directly. According to the latest fund of funds data from eVestment, fewer and fewer investors see the value of fund of funds.

"It really continues to surprise me that people are still curious about the lag in hedge fund industry top line growth when the historical largest single investor in hedge funds - fund of funds - is going through a massive trend shift," says Peter Laurelli, VP and head of industry research, eVestment in an interview with Opalesque.

According to the report data, funds of hedge funds were up 4.05% YTD through April in aggregate, slightly worse than the 4.46% posted by the hedge fund industry. On an absolute basis, both underperformed the S&P 500 for the period, up 12.02%.

Assets under management are growing, although they are growing from performance, not new allocations. Total estimated AUM in pooled fund of hedge funds was USD 882.8bn at the end of May 2013 - a USD 2.3bn increase for the year so far. That figure will likely dip following the recent sell off in equities markets. Investors redeemed an estimated USD 25.2bn from fund of funds vehicles in Q1.

Laurelli expects that the outfl......................

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. Performance - Hedge fund mojo is back with investor hopes at six-year high, These hedge funds produce the most consistently great results[more]

    Hedge fund mojo is back with investor hopes at six-year high From Hedge funds on the heels of a surprisingly strong performance in 2017 are raising hopes for an encore. Investors expect their managers to return 8.5 percent in 2018, according to a Credit Suisse Group AG sur

  2. Investing - Hedge funds amass big bets against world's leading advertisers, Investor Elliott Management buys tiny stake in Wipro[more]

    Hedge funds amass big bets against world's leading advertisers From Hedge funds have amassed bearish bets of more than $3bn against the world's largest advertising companies in an attempt to profit as the industry undergoes ongoing wrenching disruption and slowing growth. Funds i

  3. News Briefs - Investcorp to launch a $100 million PE fund for Omani pension funds[more]

    Bahrain-based investment firm Investcorp will soon launch a $100 million fund dedicated to Oman's Pension Funds as part of its investment plan. 'The Opportunities Fund' will be focused on private equity investments in the U.S. and Europe and will target mid-sized companies across a broad range of se

  4. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  5. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t