Fri, Mar 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

InvestHedge Billion Dollar Club survey: Global funds of hedge funds industry drops in size but still manages $735bn

Friday, September 04, 2009
Opalesque Industry Updates: The funds of hedge funds industry shrank a further 13.5% in the first half of 2009, with the previous freefall broken by relatively strong positive performance of 5.12% to the end of July, according to the latest survey of the InvestHedge Billion Dollar Club.

The largest funds of funds—those with more than $1 billion in assets under management – now control a combined amount of $613 billion in assets, according to the six-monthly 2009 asset flow survey carried out by InvestHedge, the leading publication about investors in hedge funds.

For the first time, however, this number has been added to the assets of all the many other non-InvestHedge Billion Club members also in the InvestHedge Database to produce a total of $735 billion, the first ever definitive total figure for the global funds of hedge funds industry.

If the global hedge fund industry is estimated at close to $1.7 trillion in total assets then funds of funds still allocate about 40% of that total.

“A lithe funds of funds industry is rebounding from the crises of the last 18 months”, says Niki Natarajan, editor of InvestHedge. “It is leaner, fitter and only those that have shown themselves to have managed the different challenges with a defined, repeatable and explainable process are set to survive and win the institutional money that is certain to come back.”

“The industry is in the process of re-emerging as the tool of choice for investors to allocate assets to absolute returns funds according to their guidelines, time frames and liabilities. The re-born industry will be more in line with investors.”

There are now 117 funds of hedge fund management companies in the InvestHedge Billion Dollar Club, with 18 leaving the rankings in the first six months of 2009. Over the last 18 months since the start of the sub-prime mortgage crisis, some 48 groups fell out of the rankings after shutting their businesses or the assets falling below the $1 billion level. Over 18 months, the industry lost nearly 40% of its assets, equivalent to nearly $400 billion.

UBS Global Asset Management A&Q with total assets of $31 billion retained the top slot in the rankings. If the assets of UBS Wealth Management USA are added in, UBS has a total of $33.3 billion, making it the largest fund of fund management group in the world.

With $26.4 billion, Man Investments is now the second largest, having formally combined the assets of its RMF Investment Management, Glenwood Capital Investments and Man Global Strategies units.

Blackstone Alternative Asset Management has jumped to third place with $25 billion in assets.

Top 10 largest Funds of Funds:

   30 June 2009  Assets $bn
UBS Global Asset Management A&Q  31.43
Man Investments 26.4
Blackstone Alternative Asset Management 25.07
Union Bancaire Privée 23.83
HSBC Alternative Investments 22.27
Goldman Sachs Asset Management 21.4
Grosvenor Capital Management 20.3
Permal Investment Management 18.7
GAM Multi-Manager 16.1
Pacific Alternative Asset Management Co. 15.63
Total 221.14

- FG

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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner