Sat, Oct 22, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Blackstone tops rankings as global FoHFs industry stalls at $595bn, says InvestHedge’s Billion Dollar FOHFs Club survey

Monday, September 06, 2010
Opalesque Industry Update -
• The funds of hedge funds industry lost a net $3.6 billion in assets during the first half of 2010, compared to $95 billion a year ago

• Firms with more than $1 billion in assets now manage a combined total of $595 billion

• $210 billion is in the hands of the 10 largest FOHFs managers

• 106 funds of hedge fund management firms now control hedge fund assets of $1 billion or more

• Blackstone Alternative Asset Management emerges as largest funds of funds group in the world

The global fund of hedge funds industry, as represented by the largest players, saw a small decline in overall assets of -0.6% in the first half of 2010. This asset decline is in line with the average funds of hedge funds performance for the same period, according to the latest survey of the InvestHedge Billion Dollar FOHF Club.

The largest funds of funds—those with more than $1 billion in assets under management – now control a combined amount total of $595 billion in assets, according to the six monthly 2010 asset flow survey carried out by InvestHedge, the leading publication about investors in hedge funds. The top 10, however, added $6.4 billion and grew by more than 3%.

―Some of the savvier end investors are now choosing to allocate directly, but the role of the funds of hedge funds is not about to be eliminated. Funds of funds will simply no longer be paid for access to the brand names, and those that simply built businesses on an asset gathering model will soon find it impossible to justify their fees‖ says Niki Natarajan, Editor of InvestHedge.

―A number of funds of funds are offering new bespoke services such as portfolio customisation, while others are creating niche or more exotic offerings to complement plain vanilla multi-manager portfolios. Our view is that funds of funds that succeed in offering a performance double-whammy of a top-down global macro view mixed with original high octane managers will have no problem staying in business.

There are now 106 funds of hedge fund management companies in the InvestHedge Billion Dollar FOHF Club, with 9 leaving the rankings in the first six months of 2010, including Ivy Asset Management, whose business is now being unwound. Asset levels in the top fund of funds have now shrunk by more than 50% from $1.12 trillion in the hands of 160 billion dollar funds of funds at their peak in June 2008.

Blackstone Alternative Asset Management’s assets have grown by 2.29% in the first six months of 2010 to gain top slot in the rankings and become the largest funds of hedge funds in the world for the first time. UBS Global Asset Management A&Q, with total assets of $24.2 billion, has dropped to third place. HSBS Alternative Investments is now number two with funds of hedge funds assets of $26.8 billion, although it has $33.2 billion in total in alternatives (including custody assets).

A year ago, Man Investments and Union Bancaire Privée were at 2nd and 4th positions in the list respectively, but both firms have now fallen out of the top 10. Swiss based UBP, which now has $16.1 billion under management, is in 11th place, while the multi-manager business of Man Investments has fallen to 13th place. BlackRock Alternative Advisors, Morgan Stanley and GAM have re-entered the top 10.

Top 10 largest Funds of Funds ..... 30-Jun-10
Blackstone Alternative Asset Management ..... 28.51
HSBC Alternative Investments ..... 26.83
UBS Global Asset Management A&Q ..... 24.21
Grosvenor Capital Management ..... 22.95
Goldman Sachs Asset Management ..... 20.82
Permal Investment Management ..... 19
Morgan Stanley ..... 17.53
GAM Multi-Manager ..... 17
BlackRock Alternative Advisors ..... 16.8
Pacific Alternative Asset Management Co. ..... 16.6
Total ..... 210.25

Source: InvestHedge

(press release)


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion