Mon, Oct 5, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

InvestHedge survey: FoHFs industry shrinks by 10% in 2009 but trend is reversing

Monday, March 15, 2010
Opalesque Industry Update - The fund of hedge funds industry lost 10% of its assets in 2009, but the indications are that the trend is reversing. The industry started its road to recovery in 2009 with average performance up 9.21%, according to the latest survey of the InvestHedge Billion Dollar Club.

Some firms continued to rebuild after 2008, while those that had avoided serious liquidity and fraud issues were free to exploit the rich opportunities in the markets, especially in the credit and distressed areas.

The largest funds of funds – those with more than $1 billion in assets under management – now control a combined amount of $625 billion in assets, according to the 2009 asset flow survey carried out by InvestHedge, the leading publication about investors in hedge funds.

“Strong performance is helping to drive a recovery but it’s also interesting to see this being complemented by a reversal in asset flows. Fund of hedge funds assets declined by $95 billion in the first half of 2009, but by the year end this had reduced to $72 billion,” said Niki Natarajan, editor of InvestHedge.

“For the first time since InvestHedge was launched in 2002, the firms that have seen strong organic asset growth are also the ones that have had solid performance in 2009. It seems that common sense has returned to fund of funds investing, for now at least.”

There are now 114 fund of hedge funds management companies in the InvestHedge Billion Dollar Club, compared to 151 two years ago. Some 24 groups fell out of the rankings last year, as a result of them either shutting their businesses or their assets falling below the $1 billion level.

UBS Global Asset Management A&Q, with total assets of nearly $30 billion, retains the top slot in the industry. But Blackstone Alternative Asset Management is now the largest independent discretionary fund of funds group in the world, with $27.1 billion in assets. Blackstone moved up from third to second place in the 2009 survey.

Union Bancaire Privée, which in June 2008 was briefly the largest fund of funds firm in the world, has toppled to seventh place with $18.8 billion in total assets. HSBC Alternative Investments is in third place with $23.3 billion under management and Grosvenor Capital Management fourth with $22.5 billion.

The rebranded Man Investments, which was in second place for the mid year survey, now sits 9th in the rankings with $17.1 billion. 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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid

  5. Performance - Manager admits spin used to hide poor performance, Fortress macro hedge fund slumps 17.2% amid manager shakeup, In the hedge fund world, bigger is still better[more]

    Manager admits spin used to hide poor performance From … Colin McLean, managing director of SVM Asset Management, told FTAdviser that fund managers underperform all the time, so stories are often needed to mask or explain this. “People need to build a good framework