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HFN administration survey finds USD 2.76trn in hedge fund assets

Date: Friday, June 6, 2008
Author: Hedgeweek.com

More than 60 administrators serviced USD2.76trn in assets managed by 13,804 hedge funds at the end of the first quarter, according to the third survey of hedge fund administrators by industry data and information provider HedgeFund.net, part of the Channel Capital Group.

The top three hedge fund administrators taking part in the HFN survey, which was sponsored by software provider Advent Software, were Citco Fund Services, Citi and HSBC Securities Services, which reported a combined total of almost USD1trn in single-manager hedge fund assets.

Citco was the largest administrator of North American and Europe-based hedge fund assets, while HSBC was the largest administrator of Asia based assets. The survey also included 54 administrators servicing USD1.39trn in assets managed by 6,562 funds of hedge funds, led by Citco, UBS Global Asset Management Fund Services and HSBC.

Kingsway Taitz, based in Sydney, Australia, was the fastest-growing hedge fund administrator, the survey found, followed by Equity Fund Services and Citadel Solutions. Citadel was also ranked as the fastest-growing fund of hedge funds administrator in the first quarter, followed by JPMorgan Hedge Fund Services and Banque Privée Edmond de Rothschild.

Combining a survey of managers with data on administrators provided by funds in the HFN database of more than 8,000 hedge funds, funds of funds and CTA/managed futures products, the information provider estimates that hedge funds accounting for more than 96 per cent of global industry assets use third-party administration services.

Having asked administrators to report hedge fund assets separately from fund of funds assets to eliminate double counting, HFN says it is confident in its estimate that total single-manager hedge fund assets reached USD2.85trn at the end of the first quarter, and that other estimates significantly below this level drastically underestimate the size of the global hedge fund industry.