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Global Hedge Fund Assets Surge 19% to $2.48 Trillion


Date: Monday, October 1, 2007
Author: HedgeFund Intelligence

- Global hedge fund assets rise over 19% in the first half

- New York extends its lead as the top centre

- About half of industry assets still allocated via funds of funds

 

London, Monday 1 October 2007 – Assets under management in global hedge funds have reached

nearly $2.5 trillion at the mid-year point of 2007 according to new research compiled by HedgeFund

Intelligence, publisher of the newsletters and databases of EuroHedge, AsiaHedge, South AfricaHedge

and InvestHedge, as well as the U.S.-based magazine Absolute Return.

 

The survey, which is based on information from the most comprehensive database of the hedge fund

industry, follows HedgeFund Intelligence’s last Global Review, published in March, which found industry

assets had cleared the $2 trillion mark (see notes) and growing at 30% per annum.

The mid-year survey, conducted with well over 5,000 single-manager hedge funds using the same

methodology as the original survey, revealed that by July 2007 industry assets had grown further to

$2.481 trillion, at an even faster growth rate of over 19% during the first half of the year (38%

annualised).

 

The survey’s other findings included:

 

- New asset gathering driving asset growth

With hedge funds averaging investment performance of just over 6% in the first half – according to

HedgeFund Intelligence’s Global Composite Index – the bulk of the increase (about two-thirds) came

from net inflows of new money from investors.

 

- Top 370 firms manage 75% of global assets

The bulk of assets remain in the hands of the ‘Billion Dollar Club’ – with the top 372 firms, each

managing more than $1 billion in hedge fund assets – collectively managing $1.892 trillion, or three quarters

of the industry’s total assets (up from 351 Billion Dollar Club firms managing $1.564 billion in

January).

 

- US dominance strengthened; New York most popular city

According to the latest research from Absolute Return magazine, 246 of the Billion Dollar Club firms are

headquartered in the US (up from 241 in January), managing a collective $1.457 trillion. According to our

EuroHedge and AsiaHedge research there are also 126 other firms based outside the U.S. that also now

run over $1 billion each.

 

New York has extended its lead as the top centre for hedge fund management globally, with the number

of billion dollar-plus funds located there increasing from 123 to 139 over the first half, and their collective

assets rising sharply from $650 billion to $881 billion. London remains in second place, with the number

of billion dollar firms there rising from 72 to 79, with collective assets also rising from $261 billion to

$316 billion.

 

- Europe assets up 17%

The EuroHedge asset survey showed that assets in European hedge funds had reached $539 billion by

the mid-year point, up from $460 billion at the start of the year, for a growth rate of about 17%. As in

the U.S., the bigger firms have got bigger in Europe, with the top 20 by assets under management now

accounting for over $200 billion in aggregate.

 

- Asia up 13%; Japan see outflows

The latest AsiaHedge survey showed that assets in Asia-Pacific hedge funds had grown to about $167

billion at the mid-year point, up from about $147 billion at the start of the year – with net outflows (of

about $10 billion) from Japan equity funds being more than offset by rapid growth in ex-Japan funds.

Australia has also emerged as Asia’s largest centre for hedge fund firms, and the country with the thirdmost

members in the Billion Dollar Club (8) after the US (246) and UK (79).

 

- Fund of funds major allocator

According to the latest research from InvestHedge – which tracks investors in hedge funds – an

increasing proportion of the new money flowing in is coming from institutional investors, with the

majority of it allocated via the fund of fund sector.

 

Commenting, Neil Wilson, the managing director of HedgeFund Intelligence said:

“The latest Global Survey shows that the hedge fund industry has continued to thrive, and attract

increasing asset flows. While these figures are only to July, and don’t yet take account of the turbulence

the industry endured in August, they indicate an industry still in robust health. The survey has also

shown, despite the speculation that it may be overtaken by London as the world’s financial centre, New

York remains very much the most favoured location of the world’s top hedge fund traders and talent.”

 

 

Notes to editors:

- This research was conducted from HedgeFund Intelligence databases and surveys that cover more than 5,000 single-manager hedge funds across the world. It is the largest participant base for any research of this type.

 

- The statistics above represent single-manager hedge funds only. Funds of funds, which are tracked by

InvestHedge, are not included in the $2.48 trillion calculations.

- HedgeFund Intelligence was founded in 1998, and is strictly a publishing business. It does not manage

money, nor advise investors.

 

About HedgeFund Intelligence

HedgeFund Intelligence is the biggest provider of hedge fund news and data in the world, with the largest and most

knowledgeable editorial and research teams of any hedge fund information provider. We supply data on more than

8000 funds and comprehensive news and insight from across the globe. Through 4 regional brands – Absolute Return,

EuroHedge, AsiaHedge, South AfricaHedge – and InvestHedge, which focuses on investors in hedge funds – we provide news and data to the global hedge fund industry.

 

For more information, please contact:

Neil Wilson, Editorial Director, HedgeFund Intelligence

+44 (0) 20 7779 7359, nwilson@hedgefundintelligence.com

 

US media:

Armel Leslie / Brendan McManus

Walek & Associates

212.590.0530

aleslie@walek.com

 

Rest of world media:

Merlin PR

Lachlan Johnston / Paul Downes

+44 (0) 207 653 6620

ljohnston@merlinpr.com

 

 

 

_________________________

Brendan F. McManus

Assistant Account Executive

Global Capital Practice Group

Walek & Associates | Financial & Corporate Communications

317 Madison Ave.
|
Suite 2300
| New York | NY | 10017

Direct: 212.590.0524 | Fax: 212.889.7174 | Mobile: 201.819.2918

E-mail: bmcmanus@walek.com | www.walek.com

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