Thu, Mar 30, 2017
A A A
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

amb
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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  3. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He

  4. Opalesque Exclusive: Swiss start-up and German fund manager to launch AI hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: NNAISENSE, a Swiss start-up that develops artificial intelligence (AI) and machine learning applications, and

  5. Eric Mindich to shutter hedge fund Eton Park after difficult 2016[more]

    Komfie Manalo, Opalesque Asia: Erich Mindich is shutting down his hedge fund Eton Park after losing 9% in 2016 and its assets falling by $2bn to the current $7bn, Reuters reported. Mindich told investors