New York (HedgeCoVest.Com) – One of the hottest topics among the political crowd is income inequality or wealth concentration. It has already become a rallying cry for several of the candidates in the 2016 Presidential election. The discrepancy between what the top 10% own and what the bottom 1o% own is also skewed greatly in the hedge fund industry.
According to the latest report from industry research firm Preqin, the top 11% of hedge fund managers control 92% of the assets invested in hedge funds. The report shows that there are 570 funds with at least $1 billion in assets and those 570 funds represent just over 11% of the single-manager funds tracked by Preqin.
Preqin also reported asset totals of $3.16 trillion for the hedge fund industry, which would mean that the 570 funds are managing approximately 42.78 trillion. “Within this group of elite fund managers, many have steadily grown their assets over decades demonstrating a consistently strong track record over many market cycles. Some newer entrants have either demonstrated superior performance in a shorter term to accumulate their assets or have spun out of existing $1bn Club firms to attract significant pools of capital to their new ventures.” Amy Bensted – Head of Hedge Fund Products, Preqin.