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Komfie Manalo, Opalesque Asia: The number of fund of hedge funds launches declined in 2015, with the
falling level of capital invested in the space, as fund managers saw
little scope for new products to enter the market last year, reported
data provider Preqin.
In the latest edition of Preqin's Hedge Fund Spotlight, the report said
that only 32 new funds were launched last year, down from the 86
launches recorded in 2014. Interestingly, the number of liquidations
numbered 97 in 2015, down from the 129 in 2014 and 170 in 2013.
The report said, "The fact that there were more than three times as many
fund closures as launches in 2015 confirms that the fund of hedge funds
industry remains in a period of consolidation. There were a
number of mergers, acquisitions and spin-outs in 2015, including
Aberdeen Asset Management announcing the purchase of Arden Asset
Management in Q3 2015, which was completed in January 2016, and
Investcorp acquiring SSARIS Advisors in Q4 2015."
It added that a long period of growth prior to 2008 saw the fund of
funds sector mature and institutional investors become more comfortable
with hedge fund investments. The environment in recent years has become
more competitive, as investors increasingly move towards single-manager
portfolios, and many established players in the industry now seek to
facilitate innovation by acquiring profitable fund of hedge f...................... To view our full article Click here
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