Tue, May 22, 2018
A A A
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
$bn
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)

Bg

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven