Fund of funds assets decline 13.4% in the first half
Fri Sep 25, 2009
The fund of funds industry, down 38.9% from its $1 trillion peak, shrinks 13.4% in the first half.
By Niki NatarajanBlame it on Bernie Madoff. Union Bancaire
Privée’s losses from the Madoff scandal
pushed the Swiss fund of funds from its top spot on the
InvestHedge Billion Dollar Club a year ago to fourth place at
midyear. UBP still has $23.83 billion, having lost $18.95
billion in the first half, its 44.29% slide in assets
representative of the industry’s much-diminished
affluence.The collapse of Madoff’s Ponzi scheme,
together with Lehman Brothers’ bankruptcy, has
injured not only UBP but the entire funds of funds industry,
which has been sinking for 18 months. The InvestHedge six-month
survey of the largest funds of funds—those with $1
billion or more in assets under management—found 117
firms managing $613.17 billion at the end of June, a decline of
13.4% for the six month-period. The decline has slowed,
however, since assets have decreased 38.9% from their $1
trillion peak at the end of 2007. Another...
ISSN: 2151-1845 / CDC10004H
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.