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
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