By Niki Natarajan
The fund of
funds industry, as represented by the largest players with more
than $1 billion in assets, is still a force to be reckoned with
despite the hostile asset raising environment and the
challenging markets of 2010. The once titanic trillion dollar
fund of funds industry has emerged as a leaner and cleaner
group of savvier investors with $595 billion divided among 106
of the largest players.
Reflecting the new maturity of the fund of funds industry,
where true performance is now rewarded with assets,
discretionary managers, particularly independent firms, are
enjoying a renaissance. As a statement of this trend,
Blackstone Alternative Asset Management is now the largest fund
of funds in the world, with assets of $28.51 billion and a
growth rate in the first six months of 2.29%.
Blackstone's fund of funds business, which is run by Tom
Hill in New York,...