Billion Dollar Club Industry Analysis

Fund of funds assets decline 13.4% in the first half


The fund of funds industry, down 38.9% from its $1 trillion peak, shrinks 13.4% in the first half.

By Niki Natarajan

Blame it on Bernie Madoff. Union Bancaire Privée’s losses from the Madoff scandal pushed the Swiss fund of funds from its top spot on the InvestHedge Billion Dollar Club a year ago to fourth place at midyear. UBP still has $23.83 billion, having lost $18.95 billion in the first half, its 44.29% slide in assets representative of the industry’s much-diminished affluence.

The collapse of Madoff’s Ponzi scheme, together with Lehman Brothers’ bankruptcy, has injured not only UBP but the entire funds of funds industry, which has been sinking for 18 months. The InvestHedge six-month survey of the