The changing face of the fund of funds industry
Tue Mar 2, 2010
Transparency, liquidity, fee alignments and regulation are on the agenda as performance and assets turn a corner
fund of hedge funds industry, as represented by the largest
players with more than $1 billion in assets, has entered a new
paradigm. Transparency, fee alignments, leverage, liquidity,
fiduciary responsibilities, compensation and increased
regulation are all on the agenda and likely to shape the world
of hedge fund investing going forward. Getting investor
sentiment for hedge funds back on side is considered by the
majority of the InvestHedge Billion Dollar Club survey as one
of the main challenges for 2010.
Two years ago, 151 of the largest funds of funds in the
world had more than $1 trillion in combined assets under
management. This universe has shrunk in number by 25% since
December 2007 and is now home to 114 firms with $625 billion in
assets as of 31 December 2009 - equivalent to 43% less under
management than two years ago. That said, on a larger asset
ISSN: 2151-1845 / CDC10004H
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