•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

From Kirsten Bischoff, Opalesque New York:

When the hedge fund industry saw the redemptions that decimated its asset base through 2008 and early 2009, many of the funds that suffered the greatest asset losses were strong performers hurt by the simple fact that they managed liquid strategies.

“60% of the assets that we lost were due to the ATM syndrome,” Dermot Butler, chairman of Dublin-based global administrator Custom House Fund Services (Ireland) Limited told Opalesque.

Currently, the situation has stabilized and the hedge fund industry has seen net inflows for 10 of the past 11 months (HFN). While most would agree that the returning assets have favored large, well-established firms over smaller funds, there are also indications that trends such as the continued popularity of managed account platforms and higher expectations for transparency at all levels of investing have become permanent mainstays of the industry.

Administrators overall saw a faster bounce-back in assets than hedge funds due to a combination of new clients (driven by post-Madoff investor demand that funds use independent administrators), strong performance from clients in 2009, and returning assets.

“Within the Top 40 administrators, $270bn was added in 2009, most of which can be attributed to growth from existing clients. New client additions definitely contributed, but new client growth was mainly seen in smaller administrators,” Daniel Golyanov, senior research an......................

To view our full article Click here