The Blackstone Group is the biggest player in the stagnating fund of hedge funds industry, according to a new ranking.
Blackstone Alternative Asset Management is the biggest fund of funds, with $39 billion in assets under management. That's a 15% increase from the previous year—in a 2011 that saw total fund of funds assets among the biggest firms drop $3 billion.
HSBC Alternative Investments took second place among InvestHedge's annual Billion Dollar Fund of Hedge Fund Club members, with $28.5 billion. UBS Global Asset Management came third with $27 billion.
"Our latest figures show that there will always be a role for the good funds of hedge funds, despite the challenging market conditions of recent years," Niki Natarajan of InvestHedge said. "Those with a large established infrastructure will be able to support the requirements of this trend, resulting in further mergers and acquisitions, such as the recent Union Bancaire Privée and Nexar Capital deal."
There was little change in the top 10 this year. In addition to Blackstone, HSBC and UBS, Grosvenor Capital Management, Goldman Sachs Asset Management, Morgan Stanley and BlackRock Alternative Advisors made the list. Only Mesirow Advanced Strategies broke into the top 10, displacing Lyxor Asset Management.