Monday, 30 March 2015
Last updated 6 hours ago
Nov 20 2008 | 1:45am ET
In the not-too-distant past, it looked like hedge funds were poised to blast through the $2 trillion barrier (some estimates say the industry already has). But with hedge funds in crisis, Citigroup says they may have to settle for half that.
Worldwide hedge fund assets may fall to about $1 trillion by the middle of next year, which would be a year-on-year decline of almost 50%, analyst Tobias Levkovich wrote in a report on the industry. Investors are poised to pull some 20% of their money from an industry already battered by redemptions and double-digit losses.
“The so-called ‘Swiss hot money’ wants out and funds are responding,” according to Levkovitch. “Citi’s credit analysts estimate that hedge funds have raised cash to roughly 40% of assets already in anticipation of known redemptions and possibly unanticipated demands from investors.”
What’s more, the newer, smaller hedge fund industry may have to make do with less leverage to boost returns, Levkovitch predicts.
“The future of the hedge-fund industry looks set to be one in which leverage will not be used as aggressively, partially as a result of recent losses but also because the prime brokers will not provide it easily,” he wrote.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…