Mon, Dec 22, 2014
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  5. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for