Sat, May 23, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner