Geneva’s Funds Of Funds Take Big Hit

Jul 27 2009 | 9:58am ET

Geneva’s pioneering fund of hedge funds business is on the brink. The Swiss city, whose famously secretive banks have been investing in and running funds of funds for more than 40 years, has seen its assets under management in the space plummet in the wake of last year’s huge losses, Bloomberg News reports.

Genevan funds of funds, which were also hard-hit by the Bernard Madoff Ponzi scheme, have seen their assets under management fall by 72% since the end of 2007. The industry, which once managed US$54.2 billion, now oversees just US$15 billion.

What’s more, while the hedge fund industry as a whole has begun to turn around, Geneva’s funds of funds keep dropping like flies. Almost a quarter of the 227 funds of funds in business on Dec. 31 have shut down, Bloomberg reports, while only five new funds of funds have debuted.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...