Sun, Dec 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

HFI: Global hedge fund assets bounce back to $1.8tn

Monday, March 08, 2010
Opalesque Industry Update - After a dramatic fall during the previous 18 months from the beginning of 2008, overall assets in global hedge funds staged a modest recovery during the second half of 2009, rising about 10% to reach $1.82 trillion. Over the full year, however, assets were up only very slightly – following a first half when strong performance could not offset continuing net outflows from redeeming investors.

The latest global asset figures mark an encouraging turnaround following a traumatic 18- month period when the industry contracted by more than 30%. However, they still leave the global asset total a long way short of the previous all-time high, measured at close to $2.7 trillion during 2007.

Including the increasing number of hedge funds, mostly in Europe, that are in an onshore UCITS III format – only those UCITS funds that use genuine hedge fund strategies and techniques – adds a further $30 billion-plus of assets, which takes the overall total to $1.85 trillion and slightly back above what it was a year ago.

As in previous years, the lion’s share of the industry’s assets are managed in the United States, with the 213 members of the Absolute Return Billion Dollar Club accounting for collective assets of $1.182 trillion, which was up a modest 4% from a year before.

Globally, there are also over 90 additional firms – mostly in Europe and Asia – that also run hedge fund assets of $1 billion or more, taking the total number of billion dollar firms around the world to 307 with combined assets of $1.497 trillion. The rest of the industry’s assets are managed by the many smaller firms that run hedge funds around the world.

New York remains by some distance the biggest hedge fund market centre in the world, with some 118 billion dollar firms, and still well ahead of London in second place which has 55 billion dollar firms. The share of assets of the top two centres – measured by the location of headquarters for each firm (given that many leading firms have offices in both centres) – is not much changed from a year ago.

Although the industry is geographically diverse, various other centres in the US – such as Connecticut, Massachusetts, California and Texas – also remain larger in asset terms than the other centres in Europe and Asia.

A full list of the billion dollar firms will be available as usual to subscribers via the annual HedgeFund Intelligence Global Review, which will be published at the end of March.

Neil Wilson, managing editor at HedgeFund Intelligence said:

“Our authoritative research has shown that the hedge fund industry is recovering from the financial crisis, but there is still a long way to go before global assets return to their previous peaks.”

“A clear growth area has been through UCITS III, which is still relatively small at this stage but growing fast and offering further evidence of the industry’s ability to innovate and rapidly evolve. Our new UCITS database is providing the first reliable means of measuring the size and performance of this increasingly important sub-sector.” Corporate website: www.hedgefundintelligence.com

- 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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und