Billion Dollar Club Industry Analysis

The changing face of the fund of funds industry


Transparency, liquidity, fee alignments and regulation are on the agenda as performance and assets turn a corner

The fund of hedge funds industry, as represented by the largest players with more than $1 billion in assets, has entered a new paradigm. Transparency, fee alignments, leverage, liquidity, fiduciary responsibilities, compensation and increased regulation are all on the agenda and likely to shape the world of hedge fund investing going forward. Getting investor sentiment for hedge funds back on side is considered by the majority of the InvestHedge Billion Dollar Club survey as one of the main challenges for 2010.

Two years ago, 151 of the largest funds