Wed, Jul 1, 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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  4. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  5. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

 

banner