Hedge Fund Assets Back At Pre-Crisis Levels

Mar 3 2010 | 5:40am ET

It’s as if 2008 never happened.

Hedge funds are back to where they were three years ago, at least as far as assets under management are concerned. The industry grew by 62% last year, according to the Hennessee Group, bring total assets to $1.96 trillion, roughly where they were before the economic crisis struck.

All told, hedge funds managed $751 billion more at the end of 2009 than they did at the beginning. Much of that increase is the result of strong performance last year, but investors began returning to the sector, as well: Net inflows totaled $448 billion last year.

“Institutions are continuing to wake up to the notion that hedge funds actually add value,” Hennessee’s Charles Gradante said. “This is a direct result of performance during the crisis and 2009.”

The industry’s recovery is proving somewhat slower in Europe, however. European hedge funds grew by 9.1% in the second half of last year to reach $382 billion, according to Hedge Fund Intelligence. At their peak at the end of 2007, the European industry measured $575 billion.

“The hedge fund industry in Europe has turned the corner and is starting to recover quickly from the earlier downturn,” Nick Evans, editor of HFI’s EuroHedge, said.

Taking into account the rash of UCITS III-compliant hedge funds, European funds manage a total of $405 billion.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of