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Hedge funds: US Billion Dollar Club expands during global pandemic

Monday, June 21, 2021
Opalesque Industry Update - HFM reports that assets managed by America's Billion Dollar Club (BDC) of leading firms hit a record high as the industry navigated the global pandemic and rebounded in the second half of last year.

BDC membership and assets fell in the first six months of 2020 but both rose in the second half, with assets increasing by 7.6% from $1.83trn at mid-year to $1.97trn as of year-end. BDC membership in the region increased from 283 to 288 between July and December.

The overall assets figure is a record high for the US industry, driven by resurgent performance after widespread losses in the first-quarter Covid-19 market meltdown.

An updated methodology which included 130/30 funds for the first time, and some newly classified funds, also caused an uplift. After heavy investor redemptions in the first half, investor flows movement was broadly flat in the second half, with a net $3.7bn leaving the industry, according to HFM data. US hedge funds have already attracted $25.6bn on a net basis so far this year.

US hedge funds averaged gains of 13% last year on a mean basis. On a median basis, the industry rebounded 10.1% in the second half and finished the year up 8.8%.

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