|
In association with Hedge Fund Intelligence |
Assets in global hedge funds dropped sharply during 2008 to finish the year at just over $1.8 trillion, according to HedgeFund Intelligence’s global database. It reveals that the fall in net assets occurred almost entirely in the second half of the year, with a drop of 32.3% from $2.697 trillion at the end of June to $1.826 trillion at the end of December. Assets stood at $2.646 trillion at the beginning of 2008. The decline in assets under management flows from a mixture of negative performance and net redemptions from the industry, as the tumultuous conditions wrought by the global economic crisis had a serious impact on hedge funds in 2008. The mean average returns from hedge funds were close to minus 15% in 2008 – though with huge dispersion in the returns from individual funds, including a significant minority that were up for the year.
As a number of funds have imposed gate provisions or suspended redemptions, assets could fall a further 20% or more from end-2008 levels before the decline is likely to reach a bottom – which we expect to occur some time this year. Already, however, there are indications that many end-investors plan to increase their allocations to hedge funds this year – given that hedge fund performance, although negative in 2008, has continued to be better than the returns from most other investments, such as equities or real estate/property.
New York remains the top centre for hedge funds, with more than 120 Billion Dollar Club firms and close to 47% of the assets of this group. London, in second place, has 65 billion-dollar firms, with a 17% market share of assets. Eight of the top 10 firms by assets are based in the US; the other two – Brevan Howard and Man AHL – are in London.
The number of firms running hedge fund assets of $1 billion or more fell from 395 in mid-2008 to 311 at the end of the year. The combined assets of the global club also fell from $2.161 trillion to $1.455 trillion.
|
Where $1.8 trillion in assets are managed |
 |
| Source: HedgeFund Intelligence |
| The global billion dollar club | |||||
| Assets by location | |||||
| City/State | Country | AUM ($bln) | Firms | % of assets | % of funds |
| NY | US | 678.52 | 123 | 46.62% | 38.20% |
| London | UK | 248.18 | 65 | 17.05% | 20.19% |
| CT | US | 148.54 | 29 | 10.21% | 9.01% |
| CA | US | 94.23 | 25 | 6.47% | 7.76% |
| MA | US | 76.79 | 10 | 5.28% | 3.11% |
| TX | US | 20.37 | 7 | 1.40% | 2.17% |
| Hong Kong | Hong Kong | 7.49 | 6 | 0.51% | 1.86% |
| Tokyo | Japan | 6.03 | 6 | 0.41% | 1.86% |
| IL | US | 26.30 | 5 | 1.81% | 1.55% |
| Sydney | Australia | 17.31 | 5 | 1.19% | 1.55% |
| MN | US | 16.64 | 4 | 1.14% | 1.24% |
| NJ | US | 12.20 | 4 | 0.84% | 1.24% |
| Paris | France | 7.53 | 4 | 0.52% | 1.24% |
| WI | US | 14.97 | 3 | 1.03% | 0.93% |
| Stockholm | Sweden | 11.31 | 3 | 0.78% | 0.93% |
| Singapore | Singapore | 6.95 | 3 | 0.48% | 0.93% |
| GA | US | 8.68 | 2 | 0.60% | 0.62% |
| Bermuda | Bermuda | 4.90 | 2 | 0.34% | 0.62% |
| VA | USA | 4.29 | 2 | 0.29% | 0.62% |
| Other | 44.13 | 14 | 3.03% | 4.35% | |
| Total | 1,455.35 | 322 | 100% | 100% | |
| Source: HedgeFund Intelligence | |||||
The full survey results, including a list of all the firms with more than $1 billion of hedge fund assets globally, will be published in HedgeFund Intelligence global review in April.
|
|
In association with Hedge Fund Intelligence |
