Hedge Fund Industry To Hit $4 Trillion This Year

Jul 31 2008 | 11:08am ET

Hedge funds are heading for $4 trillion despite a slowdown in asset growth, according to a new survey.

The industry managed about $3.8 trillion in assets as of March 31, Carbon360 Research said. Funds of funds—including private equity strategies—managed $1.32 trillion. But asset growth will slow to between 8% to 9% this year, bringing total assets in the industry to about $4 trillion by the end of the year. Hedge funds have grown by an annualized 28.5% over the last three calendar years, according to Carbon360’s figures.

“Continued merger action and private equity-backed liquidity events are expected among fund administrators as many start to experience technology and personnel limitations, requiring fresh capital to keep growing,” said Brian Shapiro, Carbon360’s president.

“This is also a case of getting while the getting is good, with the majority of smaller players all hanging out ‘for sale’ signs.”

Carbon360’s estimate of hedge fund size is significantly larger than most. The firm bases its numbers on a survey of 103 hedge fund administrators, as well as $438 billion managed by self-administered funds.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...