Thu, Feb 11, 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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s