From today’s FT.
HNW continue to flee hedge funds leaving an industry that is “more North American and more institutional.”
“Rich Europeans, who were the first to invest in hedge funds and once comprised the majority of investors, have been the first to exit in the downturn, according to a study out Monday.
High net worth individuals last year accounted for 80 per cent – or more than $500bn – of hedge fund redemptions, though they only held two-thirds of the assets. The outflows were disproportionately European, the study by the Bank of New York Mellon and Casey Quirk, a research firm, said.”
“The result is not only a smaller industry, but a capital base that is more institutional and more North American,” the study said.
“Individual investors’ share of hedge fund assets has dropped from 67 per cent in 2005 to 57 per cent at the end of last year.”
April 20, 2009
Casey Quirk/BONY research: