By Niki Natarajan
The once Titanic global funds of funds industry, as represented by the largest players with more than $1 billion in assets, has turned its ship around in 2010. Despite returns of only 4.86% and what is still a hostile asset-raising environment, the fund of funds with more than $1 billion in assets grew by 4.82%, proving that the haemorrhaging of assets has finally stopped.
Overall, the InvestHedge Billion Dollar FoHF Club added nearly $29 billion in either new assets or performance, proving that the industry is finally ready to move forward.
The 109 firms that now represent the largest in the global funds of funds industry manage collectively $624.9 billion, which is 36% less assets — equivalent to $980 billion — than the same universe ran at its peak at the end of 2007. The...