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,...