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

In Depth: Are Large Judgments The Next Target for Hedge Funds?

Aug 12 2015 | 3:46pm ET

Hedge funds are no strangers to making investments that are sensitive to litigation...

Lifestyle

Provio Brings Anonymous Interviewing to Wall Street

Aug 12 2015 | 2:44pm ET

Taking a page from social networking and dating websites, a startup technology company...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note