Sun, Jun 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund industry adds an average of 4.5 new funds per day in 1Q 2011

Thursday, June 16, 2011
Opalesque Industry Update – There was an average of 4.5 hedge fund launches every business day during the first quarter of 2011, according to research by HFR. The firm’s Market Microstructure report on the hedge fund industry revealed that there were 298 launches in the first quarter, as hedge fund assets passed the $2tln mark for the first time.

However, the firm also reported that liquidations were also at a 12-month high as 181 funds closed in the first quarter, bringing the 12-month total of liquidations to 684 funds.

Fees – the other industry trend
Hedge fund fees, which have reportedly been under pressure since the global financial crisis struck, have fallen in the case of management fees. HFR reports that they saw the sixth consecutive quarter decline for what is typically thought of as the “20” in 2 and 20 fees. Average incentive fees are now 18.85%. Management fees have remained constant at 1.58% over the past few months, but climbed to 1.67% in 1Q2011.

It is possible the rising management fee may be indicative of the expenses being faced by funds as they seek to build out the institutional quality infrastructures that more investors are demanding in return for allocations. “Recent milestones of hedge fund industry growth have been reached as a result of powerful trends across strategies, service providers and structures, which continue to attract investors,” Kenneth J Heinz, President of HFR said in a statement. “As the industry continues to appeal to a wider constituency of global investors more funds are launching to suit specialized investor requirements, preferences, risk tolerance and performance expectations.

Source

kb

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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,