Funds of Funds: Outflows hit funds-of-funds universe


The ripple effect of last summer’s credit crunch has taken its toll on funds of hedge funds, with more than a third of the firms suffering net outflows. While the six-month survey of fund-of-funds asset growth for the year ended June 2008 found that the largest funds of funds, those with $1 billion or more under management, had grown 4.55% through midyear, the forecast for the full year’s growth is drastically bleaker, and likely to show net outflows for the first time since the survey has been conducted.

The fallout from deleveraging is starting to take its toll