Majority of hedge funds remain unimpaired in midst of crisis
Around 17 per cent of hedge funds had suspended redemptions, imposed gate provisions or side-pocketed assets at the end of March this year, according to a research report from the Credit Suisse/Tremont Hedge Fund Index.
The report found 17 per cent of funds were classified as ‘impaired’ at that time.
According to the Credit Suisse/Tremont Hedge Fund Index, overall assets under management for the industry fell by around US$163 billion in the first quarter of 2009. This compares to outflows of US$582 billion in 2008. The report estimates that around US$149 billion of those losses were the result of investor redemptions. Total hedge fund industry assets were estimated at US$1.3 trillion at the end of March.
The report confirmed that further consolidation of the hedge fund industry is likely. The writers of the report anticipate future interest in hedge funds is likely to be driven by institutional investors, with investors also likely to want to increase their focus on liquidity, transparency and costs.
Hedge funds posted gains of 0.9 per cent between January and March 2009, compared to a loss of 13 per cent in the MSCI World Index.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
