The funds of hedge funds industry entered a new paradigm in 2011 with performance hitting a low of -4.26% for the year, with only 2008 worse leaving the global FoHF universe down -17.06% for that year.
|British Museum London: 2012 awards venue |
The hedge fund industry as a whole fared little worse than FoHFs in 2011, down 2.01%, according to HedgeFund Intelligence. But the main difference between 2008 and 2011 is that clients have remained more loyal and, as can be seen by the latest InvestHedge Billion Dollar FoHF (see page 14) survey, that shows that asset outflows have been far less violent than they were in 2009.
Despite the continued belief that funds of funds are dead – the top 10 largest still managed more than 10% of the global hedge fund industry – there are still nine firms, managing the 11 winning funds, that have...