Mon, May 30, 2016
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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit