With $5.3bn raised, investable platforms are the new asset-raising engine
So far, there are fewer than 300 fund groups with strategies tracked by investable hedge fund indices that collectively run $5.3 billion. That may seem like a pittance compared to the wider hedge fund universe, but it's a safe bet that both those figures will rise over time as the index providers show every sign of gaining momentum and changing the industry in a number of surprising ways.
The most obvious change is that they are forcing the industry - or at least that part of the single-manager universe that wants to embrace the indices - down the route of super-transparency. Each of the indices insist on the use of managed accounts along with the other 'soft' information about the fund. Managers on the index platform can't be shy of publicity.
Secondly, the index platforms are providing a surprisingly successful capital...