The Absolute Return Institution: Have we come the full circle?

Wed Apr 4, 2007

Clare Flynn Levy, president, Beauchamp Hedge Fund Solutions, Linedata Services

It is clear to all industry participants that the institutionalisation of hedge funds is well and truly underway. Although a long tail of small, single-strategy funds continues to exist, the assets under management (AUM) differential between the biggest and the smallest players is growing exponentially. Certainly, a founder of a hedge fund management firm with over $1 billion in AUM today can consider him or herself very successful. But these managers, if they have not succumbed to hubris, fully recognise that the music will stop, or at least slow down, at some point - especially if the bulk of AUM is invested in a single strategy or strategy type. That manager has a choice: either milk the existing business for cash, or build it into an Absolute Return Institution. While the former would be lucrative enough to satisfy many managers,...

ISSN: 2151-1845 / CDC10004H

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