Sun, Sep 25, 2016
A A A
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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco

  5. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L