In the week ending 28 October, 2016, a study by Convergence showed that hedge funds and alternative industry grew from a year ago despite lower leverage and weak performance. Hedge funds’ assets advised by all managers of $7.2tln continue to represent the largest asset pool within the $12.79tln alternatives industry and grew 3% since Q32015. Hedge fund managers, whose alternative assets are 50% or more of their total assets, advise $5.71tln in hedge fund assets total and grew 1% year-over-year. Based on reported hedge fund NAV of $2.8tln, average leverage across the industry is approximately 2.6x of invested capital. Odyssey Search Partners said that hedge fund employees expect their average total compensation to drop 8.7% compared to 2015; a joint study by AIMA and CAIA Associates suggests there is no direct relationship between hedge fund leverage and volatility and downside risk; and investment firm Conning said municipal credit quality has declined but investors are holding on. Latest data from Preqin showed that North America-based fund managers accounted for 76% of new hedge fund launches over the last quarter; Perceptive Advisors launched a $323m fund designed to offer debt, royalty and convertible structures to life sciences and healthcare companies; Deutsche AM launched two currency-hedged international fixed income exchange traded funds; Laffitte Capital Mana...................... To view our full article Click here |
Alternative Market Briefing Weekly
Sunday, October 30, 2016
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