The ripple effect of last summer's credit crunch has taken
its toll on the fund of hedge funds world, with more than a
third of the firms seeing net outflows.
And, although the six-month fund of hedge funds asset growth
survey for the year ending 30 June 2008 shows that the largest
funds of funds, with $1 billion or more under management, have
seen growth of 4.55%, the forecast for the full years
growth is drastically bleaker, and likely to show net outflows
for the first time since the survey started.
The fall-out from the deleveraging is starting to take its
toll on the fund of funds universe. The costs of exposure to
Anthracite and Petter Worldwide are still unclear, but this
will adversely impact the assets under management in the
broader fund of funds industry. If both of these issues are not
resolved, then billions of...