Thu, Sep 21, 2017
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. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Newsoftheweird.com: Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3