Record Hedge Fund Growth Continues, FoFs Decline

May 17 2007 | 12:22pm ET

Hedge fund assets, by most measures, shattered record growth numbers last year, and the pace continued in the first quarter of 2007, according to HedgeFund.net.

Hedge funds manage more than $2.4 trillion, adding an estimated $250 billion—11.5%—in the first three months of the year, the largest quarterly increase on record. Most of the inflow, $168.6 billion, is new money, with the remaining $78.9 billion coming from fund performance.

Funds of funds continue to decline as an asset source for single-manager funds. HFN reports their assets rose just 6% to $1.143 trillion, mostly due to performance. Funds of funds now account for less than half of single-manager assets, 48%, compared to 50% as recently as the end of last year.

While HFN’s numbers are on the robust side, J. Alan Lenahan and Gregory Dowling of Fund Evaluation Group note that record-setting growth is the norm.

 “No matter the source, the industry has grown considerably, and by all estimates this growth has been driven by the global institutional acceptance of the hedge fund model,” they wrote in a recent report. As an example, they cite Hedge Fund Research numbers—“on the conservative end of estimates”—which show hedge funds adding $126 billion in 2006 to reach $1.5 trillion, shattering the previous record of $99 billion, set in 2002.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.