Thu, Dec 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund assets: older, bigger shops control and gather the most assets

Thursday, April 10, 2014

Bailey McCann, Opalesque New York:

eVestment is out with a new report that looks at the age and asset raising of hedge funds for possible correlations. Not surprisingly, the oldest, biggest hedge funds have the most assets. Also not surprisingly, these funds typically have a slightly lower rate of return than their smaller counterparts. One interesting nuance however is that age appears to play a bigger role in performance than asset size in some cases.

Looking at the report data it appears that hedge funds have a lifecycle, and the older they get the slower they get. An index of funds with less than two years of track record (rebalanced annually) outperformed mid-aged (2-5 yrs.) and tenured (over 5 yrs.) funds in each year from 2003 through 2013. The institutionalization of the industry is also driving this as institutions tend to prefer longer track records and slower moving funds.

The industry is also showing signs of mid-life weight gain. At no point in the last 11 years have both large and tenured funds accounted for as large a proportion of the overall industry as during 2013. The percentage of large funds that are tenured (over 5 years old) rose from 61.7% in 2003 to 78.35% in 2013.

The bulk is carrying over to new launches as well. Funds are launching larger and growing more quickly. The percentage of small, young funds has declined every year since 2004, down from 94% in 2004 to 77% in 2013. In the same time period, the percentage of mid-sized funds......................

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. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar