INVESTORS – FUNDS OF FUNDS: Assets stabilise in FoHF universe as players find their niche

Mon Apr 16, 2012

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The largest funds of hedge funds (FoHFs) – 107 firms with more than $1 billion under management – now manage 29% of the hedge fund global assets including UCITS and, irrespective of the continuing misguided belief that funds of funds do not add value due to their much maligned double layer of fees, this percentage is unlikely to change dramatically in the next few years. DATA INCLUDES: List of firms with $10B+ in AUM; FoHF at a glance: Firms, Funds, Assets, Median performance; Asset growth: the InvestHedge Billion Dollar Club 2001-2011


Niki Natarajan, editor, InvestHedge

The largest funds of hedge funds (FoHFs) - 107 firms with more than $1 billion under management - now manage 29% of the hedge fund global assets including UCITS and, irrespective of the continuing misguided belief that funds of funds do not add value due to their much maligned double layer of fees, this percentage is unlikely to change dramatically in the next few years.



Since the start of 2009, FoHFs have accounted for about 30% of the hedge fund industry's assets, a number that has declined very slowly as the hedge fund industry's assets have grown; yet the total assets in FoHFs have remained pretty static. The future winners of assets in the multi-manager investing space will be those that offer tailored solutions, as well as access to new talent via emerging-manager selection services.

The industry's assets ended 2011 at $622 billion and, according to...

ISSN: 2151-1845 / CDC10004H

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