By Niki Natarajan
Emerging slowly from its protective cocoon, the fund of hedge funds industry seems to be settling into its new body. A lithe figure of $613.17 billion in total assets at 30 June 2009 and 117 funds of hedge funds with more than $1 billion under management now make up the members of the six-monthly InvestHedge Billion Dollar Club survey.
The previously obese industry has reduced its assets more gradually than many expected in the first six months, having lost -13.47%, perhaps indicating that the worst may be over. In the first six months of the year, the remaining InvestHedge Billion Dollar Club lost $95 billion in assets with 26% of the universe being flat or showing growth in the first six months.
Almost a year ago Lehman Brothers' collapse was seen as the straw that would break the camel's back after a year long battle...