Wed, Oct 26, 2016
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:

- 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: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  2. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  3. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa

  4. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion