Hedge fund assets reach an estimated $2.848trn in Q1 2008

Date: Wednesday, May 21, 2008
Author: HedgeFund.net

HedgeFund.net yesterday released the Q1 2008 Hedge Fund Asset Flows & Performance Report. The report estimates total hedge fund assets fell 1.4% in Q1 2008 to $2.848 trillion. The release is concurrent to the release of the HFN Q1 2008 Administrator Survey which shows total administered hedge fund assets were $2.759 trillion in Q1. The combination of results from these two reports confirms HFN's belief that hedge fund assets are significantly greater than commonly reported.

New allocations to hedge funds were an estimated $53.02 billion during the quarter and performance losses decreased assets by an estimated $93.18 billion resulting in total hedge fund assets experiencing a quarterly decrease for the first time on record. The 1.4% decrease in Q1 2008 compares to an increase of 11.5% in the first quarter 2007.

Fund of funds’ assets increased during Q1 2008, despite performance losses as new allocations were the second highest in almost four years. Total assets in funds of funds increased 1.1% to an estimated $1.404 trillion. Performance losses of $57.19 billion were offset by new allocations of an estimated $71.85 billion, an indication that large institutions continued to increase exposure to the hedge fund industry through funds of funds.