Tue, Oct 24, 2017
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad