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

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note