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

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note