FoHF 40 Act assets hit $20bn despite negative performance

Wed Dec 5, 2012

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Investors embrace RICs as ‘retail’ asset-gathering wave continues to gain momentum

For the table of SEC-registered FoHFs ranked by master fund launch date, please click here

By Niki Natarajan

As funds of hedge funds continue to be treated as social pariahs in the institutional arena, retail distribution channels and brand-name mutual fund players in the US continue to embrace FoHFs registered with the SEC under the 1940 Act as a vehicle of choice to raise assets now at $20 billion – despite average returns of the RIC universe of -1.93% for the reporting year ending 31 March 2012.

Classic mutual fund players such as Legg Mason and New York Life’s MainStay Investments have teamed up with FoHF experts to tap into the hedge fund allocation skillset. New York Life took a stake in Private Advisors in 2010 (InvestHedge, October 2012), while Legg Mason bought Permal in 2005 allowing both FoHFs to explore both the RIC and UCITS retail channels....

ISSN: 2151-1845 / CDC10004H

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