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The May 2010 Eurekahedge Report contains detailed analyses and exclusive insights into the state of the hedge fund industry in recent months up to April through a comprehensive qualitative and quantitative presentation of the industry’s asset flows and performance, with a special feature on key trends in funds of hedge funds.
2010 Key Trends in Funds of Hedge Funds Eurekahedge May 2010 Introduction Based on data in the Eurekahedge database, we estimate the current size of the fund of hedge funds sector to be US$435.7 billion in assets, with 3,124 funds. The current assets under management represent a 17- fold increase in the size of the industry over the last decade although the sector witnessed considerable losses towards the end of 2008 and early 2009. The robust growth in the funds of hedge funds in the 2000–2007 period was fuelled mainly by the increasing interest in hedge funds among investors, such as pension funds, endowments, trusts and financial institutions. These investors turned to multi-managers for their expertise in fund selection and asset allocation while also seeking to diversify away from traditional equity and mutual fund investments. Furthermore, funds of funds helped investors maintain geographically diversified portfolios without having to personally conduct extensive due diligences on single managers and also to benefit from consistent returns and downside protection. Over the last 18 months, the global fund of hedge funds universe has gone through what can be called a watershed period for the industry. While the end of 2008 and the start of 2009 was quite brutal for the managers, marked by widespread redemptions and performance-based losses, the latter part of 2009 through early 2010 has been a period of consolidation for the industry. Figure 1 illustrates the growth of the industry (assets and number of funds) since 2000. Figure 1: Industry Growth over the Years The assets under management declined to a low of US$433 billion in April 2009 before stabilising around... The full article is available in the EH Report accessible to paying subscribers only. Subscribers may continue to login as usual to download the full report and non-subscribers may email firstname.lastname@example.org to enquire on how to obtain the full research report. www.eurekahedge.com Copyright © Eurekahedge Pte Ltd 2010. All rights reserved.
"Eurekahedge May 2010 Key Trends in Funds of Hedge Funds - Abridged"