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.