Opalesque Industry Update - PerTrac, the leading provider of analytics, reporting and communications software for investment professionals, announced the release of its latest industry study, Sizing The 2010 Hedge Fund Universe: A PerTrac Study. The study indicates that the single-manager hedge fund industry recovered in 2010 with assets under management (AUM) increasing 11% over 2009 to $1.6 trillion and 1,184 new funds launching representing a 51% increase over the prior year. Total AUM for single-manager hedge funds and fund of funds was $2.1 trillion in 2010. |
Fund of funds continue to see AUM decline. The 3,196 fund of funds in the study – approximately the same number as in 2008 – had $518 billion under management in 2010. This represents a 10.5% decrease from 2009 and a steep 31% decline from 2008 when $750 billion was reported.
Commodity Trading Advisors (CTAs), the third category measured in the study, attracted investors in 2009 as a haven from stocks and bonds as their numbers peaked that year at 2,425. In 2010, the number of CTAs dropped to 1,997 which is approximately the same level as in 2008.
“As we look across the fund universe, one clear area of growth has been in the number of single-manager hedge funds, and we see that momentum continuing in the future,” said Lisa Corvese, Managing Director, Global Business Strategy at PerTrac. “Overall, the study demonstrates a rebound -- with the industry as a whole getting closer to prior peaks.”
The PerTrac study of hedge funds is unique because it is the only study that aggregates information from 10 leading global databases, allowing it to obtain a holistic picture of the industry. With its proprietary analytics software that removes duplicative fund data, PerTrac provides the most precise and most comprehensive information about the number of funds and assets under management.
Other key findings in the PerTrac study, which has been conducted annually since 2003, show that:
• There are 9,572 single-manager hedge funds;
• Almost half (3,763) of the reporting single-manager funds have less than $25 million in AUM;
• Single-manager funds are growing in AUM with 73% reporting less than $100 million in AUM in 2010 compared to 79% in 2009;
• Most fund of funds are small with just 108 (3.3%) reporting AUM of greater than $1 billion and 70% reporting less than $100 million AUM and almost 42% reporting less than $25 million AUM.
• Approximately 47% of all funds report to only one database which means investors need to use more than one database to ensure they have complete information on single-manager funds.
To download the complete study which includes additional data on the composition and size of the hedge fund industry, please click here.