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Hedge Funds End 2010 With Record Quarterly Asset Increase

Chris — Fri, 21 Jan 2011 13:33:58 +0000

Investors favor Macro, Arbitrage funds as industry nears pre-crisis asset level;
Increasing risk tolerance and falling volatility influence investor allocations
CHICAGO, (January 19, 2011) – The hedge fund industry concluded 2010 with the largest quarterly increase in assets in its history, according to data released today by Hedge Fund Research (HFR). Total industry assets grew to $1.917 trillion, reflecting a quarterly increase of nearly $149 billion, topping the previous record increase of $140 billion in 2Q07.

The year-end figure approaches the historical asset peak of $1.93 trillion set in 2Q08 and represents an asset increase of 44 percent since 1Q09. Hedge funds as represented by the broad-based HFRI Fund Weighted Composite Index posted a gain of 10.5 percent, but full-year gains were concentrated into year end, with the HFRI gaining over 5.5 percent in 4Q10.

Full press release

Ucits hedge funds boom attracts scepticism

Chris — Mon, 29 Nov 2010 18:08:35 +0000

The mini-boom in Ucits hedge funds after the financial crisis came unexpected in the investment industry. Since February the number of assets under management in Ucits hedge funds has doubled to $70billion while the number of funds has tripled to 600.

Ucits funds enable hedge fund managers to access investors that seek the returns associated with hedge funds and the security of a regulatory structure. They also make the traditionally less accessible hedge funds of countries such as France and Germany a more viable option for investors.

As a result Ucits have not only expanded their overall assets under management but also regained assets lost during the crisis. But Ucits funds are clearly not for everybody. While many investors are attracted away to Ucits fund structures by their inherent limited leverage, strict liquidity requirements, increased transparency and tighter regulation; regulators on the other hand have started to grow sceptical about the merits of Ucits and in particular have raised concerns about mis-selling. For a more detailed outlook read this article.

Q3 sees record number of hedge fund firms enter the UK market

Chris — Mon, 22 Nov 2010 12:55:20 +0000

Signs that UK hedge fund management firms are returning to their former strength emerged last week with reports that companies are being established at their fastest rate since the Lehman Brothers collapse in September 2008.

The unstable capital-raising environment of 2009 has seen recovery through a combination of strong markets, improved fundraising opportunities and increased investor demand. According to Financial News, up to September 2010 month end a total of 65 hedge fund firms had registered with the UK FSA, easily beating the 60 that registered for the whole of 2009. Additionally, the latest Hedge Fund Research data shows a net capital inflow of $19bn was allocated to hedge funds globally in the third quarter, displaying that hedge funds are already recovering to match their pre-crisis performance levels displayed in 2007. Read this article for a more in depth analysis.

Hedge funds look to increase transparency

Chris — Thu, 11 Nov 2010 16:51:26 +0000

Hedge fund investors are on the rise and with ‘alternatives’ established into the mainstream the industry is looking to adapt new transparency requirements. Mid-sized hedge funds believe they are prepared to meet the demands of their targeted institutional investors, but a 2010 Hedge Fund Industry Survey reveals such confidence may be misplaced.

With investor confidence still shaken by the financial crisis, and the Madoff fraud acting as a stark reminder of the necessity of investor vigilance, hedge funds are finding the demands of institutional investors are intensifying and that it requires more than just having a good track record to attract new clients. HFM Week’s Kapila Gohel elaborates.

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Pension Fund Alternative Portfolios in Danger of Repeating Past Mistakes

Chris — Thu, 11 Nov 2010 10:40:18 +0000

Investment in hedge funds and alternative assets is essential for a balanced pension fund portfolio. But misperceptions by pension fund investors could see a return to alternative portfolios being populated by mainstream multi-strategy mega-managers while focus shifts away from diversification and calculated risk. Stephen Oxley shares his concerns.

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Good old Hedge Fund days

admin — Mon, 13 Sep 2010 16:11:49 +0000

Staggering stats in James Mackintosh’s Weekend FT story on hedge fund values and the amount returned to investors over the lifetime of the best performing funds. And these funds, run by industry veterans such as Soros, Paulson and Alan Howard, keep going strong. Recommended reading for whoever missed this coverage.

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Hedge Funds continue to be misunderstood

admin — Fri, 30 Jul 2010 15:41:40 +0000

The observations of HFM Week Editor, Gwyn Roberts, writing last week about press reporting of Armajaro’s success in cocoa futures trading perfectly sums up the largely misconcieved and widely held lack of understanding about hedge funds and how these operate. Worth a read.

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Light at the End of the Tunnel for Life Settlements Industry

admin — Wed, 21 Jul 2010 16:23:46 +0000

It may be a case of survival of the fittest for the Life Settlements Industry. We have seen several LS companies disclose negative statements over the past few months, however the Amrita Life Settlement Index posted significant growth last quarter and we have also seen some aggressive provider purchases with low IRRs. It seems that those who endure the collapse will come out much stronger for it. Technorati’s Christian Evulich elaborates on the exciting new signs of development for the industry.

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Norway Provides New Investment Opportunities

Meglena — Thu, 15 Jul 2010 16:38:31 +0000

Norway lifts ban on institutional investor sales. Floods of start-up hedge funds applications are received, providing a timely prospect as the US and EU are continuing to clamp down. Bloomberg Businessweek’s Vibeke Laroi wrote an insightful article about the exciting new change, worth checking out.

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EU Bonuses in Danger

Meglena — Thu, 15 Jul 2010 16:33:55 +0000

The EU puts intensified restrictions on bonuses. As the government continues to blame hedge funds for the global financial crisis many might consider relocating in an effort to dodge these limitations. The Independent’s James Moore elaborates:

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