Blackstone hits $37bn as global funds of hedge funds industry continues recovery with assets now at $655bn

Tue Sep 13, 2011

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Says InvestHedge Billion Dollar FOHF Club survey


  • Fund of hedge fund firms with more than $1 billion in assets reached combined assets of $655 billion in the first half of 2011
  • The Billion Dollar Club gained a net $21 billion in the first half, a growth rate of 3.3%
  • There is now $238 billion is in the hands of the top 10 largest FoHF managers, which now includes PAAMCO
  • Blackstone, Grosvenor, BlackRock, Permal and Lyxor have all been in the top 10 for the whole of the last decade
  • There are now 108 funds of hedge fund management firms that run $1 billion or more
  • Blackstone continues to operate the largest funds of hedge funds group in the world


London, 13 September 2011 – The global funds of hedge funds industry, as represented by the largest players, is continuing a slow but steady recovery of assets since the shock of the financial crisis in 2008. In the first half of 2011 the assets of the largest funds of hedge funds grew by 3.3%, despite flat performance from the industry over this period, according to the latest survey of the InvestHedge Billion Dollar FOHF Club.

The largest funds of funds – those with more than $1 billion in assets under management – now control a combined amount of $655 billion in assets, according to the annual half year asset flow survey carried out by InvestHedge, the leading publication about investors in hedge funds.

The top 10 firms in the list added nearly $6 billion and grew by more than 2.6%, changing the trend of the last few years – when the largest were growing the fastest. Today, the 10 largest firms manage a combined $238 billion, having grown by a combined 627% in the last decade.

Of the names that were among the top 10 largest FoHFs on 31 December 2007 – prior to the worst phase of the financial crisis – Blackstone Alternative Asset Management, Grosvenor Capital Management, BlackRock Alternative Advisors (then called Quellos Capital Management), Permal Investment Management and Lyxor Asset Management are the five firms that continue to be on the list.

“The latest figures show there are more than 30 billion dollar funds of fund groups that have more assets today than they did when the industry was at its peak in December 2007 and more than half of this universe had stellar performance in 2010 showing that once again performance counts.” says Niki Natarajan, editor of InvestHedge.

“Looking at the names of firms that have continued to do well, it is clear to see that while some of the industry is continuing to suffer a period of low self-esteem, there are still a good number of groups who know what their purpose is and are able to navigate the rapidly changing investor landscape. The time for hedge funds to be used as tools – rather than to be wrongly viewed as an asset class – has come, and those that are growing have recognised this.”

There are now 108 funds of hedge fund management companies in the InvestHedge Billion Dollar FOHF Club, with Blackstone Alternative Asset Management continuing to be the largest group in the world. Blackstone added more than $3 billion, growing by 9.25%, in the first half of 2011. UBS Global Asset Management A&Q, with total assets of $31 billion, has regained second place.

HSBS Alternative Investments is now number three with funds of hedge funds assets of nearly $30 billion, although it has nearly $40 billion in total alternatives including custody assets. Blackstone, HSBC and Permal, which is the sixth largest group with assets of more than $23 billion, were the fastest growing groups in the top 10 in the first half of the year.


The top 10 largest funds of funds


30-Jun-11
$bn

Blackstone Alternative Asset Management

37.21

UBS Global Asset Management A&Q

30.82

HSBC Alternative Investments

29.78

Grosvenor Capital Management

24.4

Goldman Sachs Asset Management

23.6

Permal Investment Management

23.1

BlackRock Alternative Advisors

18.4

Morgan Stanley

17.97

Lyxor Asset Management

16.39

Pacific Alternative Asset Management Co.

16.28

Total

237.94

Source: InvestHedge


**ENDS**


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For more information, please contact:

Niki Natarajan, editor of InvestHedge
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nnatarajan@hedgefundintelligence.com

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ISSN: 2151-1845 / CDC10004H