Posted by & filed under Hedge Fund Assets.

While hard data on the hedge fund industry is hard to come by, it is commonly understood that 50% of single manager money comes from FOFs.

According to Hedgeworld, 30% of that 50% is gone, with significant implications for raising new capital. To name a few:

– consolidating positions

– knock-on redemptions

– legitimate concern over business viability

– limited time to entertain new manager ideas

 

For hedge funds reading this, be cognizant of the market dynamic before you approach a new investor. It is tough out there for everyone.

 

From Hedgeworld via InvestHedge

 

The industry’s largest funds of funds, managing more than $1 billion, now jointly control $744 billion in assets, according to industry publication InvestHedge.


In all, the hedge fund industry has $1.8 trillion under management, the magazine estimated. Some industry trackers have said that number is much lower—closer to $1 trillion or $1.5 trillion, after last year’s worst-ever returns.


The magazine found that Swiss powerhouse UBS Global Asset Management A&Q ranks as the biggest player with $34 billion in assets. Union Bancaire Privée is second with $33 billion, followed by HSBC Alternative Investment with $31.88 billion.


Outflows hit the hedge fund industry hard last year, when investors punished fund managers for their worst-ever returns—the average fund lost 19%—by pulling out roughly $155 billion. The trend was especially noticeable among funds of funds that lost an average 16.63%, InvestHedge said.

 

 

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