Thursday, 31 July 2014
Last updated 15 hours ago
Jan 15 2009 | 2:03am ET
The global industry is little more than half the size it was at the beginning of last year, according to a new report.
Hedge fund assets dropped 48% in 2008 to less than $1 trillion, according to TrimTabs Investment Research and BarclayHedge. The industry managed just $998.4 billion as of the end of December, the lowest total since July 2004, and down from $1.92 trillion at the beginning of last year. A big chunk of those losses, $148.8 billion, came in the form of year-end redemptions.
But redemptions, of course, were not the only culprit: The average hedge fund lost almost 20% last year, according to several industry indices. And that has left many hedge funds in something of a cash crunch.
“Approximately two-thirds of industry revenue comes from performance fees and we estimate that 81 percent of hedge funds were under water last year,” TrimTabs CEO Charles Biderman said in a statement.
Another research firm, HedgeFund.net, said earlier this week that the hedge fund industry posted its biggest annual decline ever in 2008, shedding 36% of its assets. HFN said the global hedge fund industry managed $1.84 trillion at the end of December.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…