Thu, Oct 8, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers April 2014

EMERGING MANAGER BULLETIN: Latest developments within the emerging manager community

Funds are launching larger and growing more quickly – eVestment

eVestment is out with a new report that looks at the age and asset raising of hedge funds for possible correlations. Not surprisingly, the oldest, biggest hedge funds have the most assets. Also not surprisingly, these funds typically have a slightly lower rate of return than their smaller counterparts. One interesting nuance however is that age appears to play a bigger role in performance than asset size in some cases.

Looking at the report data it appears that hedge funds have a lifecycle, and the older they get the slower they get. An index of funds with less than two years of track record (rebalanced annually) outperformed mid-aged (2-5 yrs.) and tenured (over 5 yrs.) funds in each year from 2003 through 2013. The institutionalization of the industry is also driving this as institutions tend to prefer longer track records and slower moving funds...

Funds are launching larger and growing more quickly. The percentage of small, young funds has declined every year since 2004, down from 94% in 2004 to 77% in 2013. In the same time period, the percentage of mid-sized funds under two years old have increased from between 5-6% pre-financial crisis, to nearly 20% in 2013. Some of this is driven by compliance cost overhead, another key driver is the growth of seed deals which were once viewed as a sign of weakness, and are now viewed as a sign of strength. The report categorizes "small funds" as those with around $250m owing to the break-even threshold after expenses...

You can read Bailey McCann's full article here. Mid-sized hedge funds achieve higher returns in 2013 - Preqin

New research from Preqin's Hedge Fund Analyst reveals that mid-sized hedge funds were the best performers in 2013 compared to other fund sizes. Mid-size......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with