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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...