Thursday, 31 July 2014
Last updated 43 min ago
Jan 26 2010 | 11:13am ET
Most hedge funds are no longer looking up at their high-water marks, and most of the illiquid assets that burned the industry are wet once again, according to a new report.
Hedge funds earned an average 19% return last year, with more than four in five funds in positive ground. Even better for the industry, hedge funds have recouped 77% of their 2008 losses, according to Credit Suisse Tremont Index.
The cause of many of those losses is also no more: An estimated 58% of the illiquid assets that “impaired” hedge funds have returned to standard liquidity status. Some $102 billion in assets have been rehydrated, leaving $72 billion high and dry.
One result of that illiquidity and those losses is that more hedge funds are open to new investment than before the economic crisis struck. Just 13% of funds are currently closed, down from 17% in November 2007. That undoubtedly has something to do with the $74 billion in redemptions the industry suffered last year.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…