Sat, Jul 26, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds' assets up 13%, reports IFSL

Monday, April 12, 2010
Opalesque Industry Update - Hedge funds’ assets increased by 13 per cent in 2009 to $1.7 trillion, according to International Financial Services London (IFSL), the independent organisation promoting UK financial services worldwide. Its annual Hedge Funds report indicates that growth of assets is likely to continue in 2010 barring further economic turbulence.

Redemptions continued for the second year running, albeit at a slower pace. The 19 per cent return in 2009, the best hedge funds’ performance in a decade, more than made up for the $85bn in net outflows. The asset raising environment gradually improved during 2009 with a return to net asset inflows during the second half of the year. Around 60 per cent of hedge fund assets with redemption restrictions at the start of the year were returned to standard liquidity terms by the end of 2009 according to the report.

The fund of hedge funds industry has been particularly affected by the economic downturn of the past two years and reputational damage resulting from the Madoff fraud. Assets of fund of funds totalled $500bn at the end of 2009, down 17 per cent from the previous year, and over 40 per cent below the peak seen two years earlier.

The number of hedge funds totalled around 9,400 at the end of 2009, a reduction of more than 1,000 from the peak seen two years earlier. New hedge fund launches however exceeded the number of liquidations in the second half of the year.

IFSL estimates that 41% of global hedge fund assets were managed from New York in 2009, down from 52% at the start of the decade. London’s 20% share of the global total was unchanged from the previous year. Europe has more than doubled its share of the global total since the start of the decade. The hedge fund industry is however concerned that the European Commission’s proposed Directive on Alternative Investment Fund Managers may create major difficulties in the medium term for non-EU funds and managers in accessing the EU market.

Marko Maslakovic, Senior Economist at IFSL, said: “The 1,000 hedge funds located in London managed more than three-quarters of European based hedge funds’ assets. The structural advantages which have long attracted hedge funds to London include its local expertise and the proximity of clients and markets. London is also a leading centre for hedge fund services such as administration, prime brokerage and custody”.

Share of Global Hedge Fund Assets Under Management by Geographical Region
  Global assets ($bn) % share of global assets
London Other Europe New York Other US Other
2000 410 8 4 52 30 6
2007 2150 20 2 40 17 21
2008 1500 20 3 41 17 19
2009 1700 20 3 41 17 19
Source: IFSL estimates

This press release, the report Hedge Funds 2010 and other IFSL publications can all be downloaded from IFSL’s website: Source

- 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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag