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Bloomberg – The global hedge-fund industry lost $64 billion of assets in November, with an index tracking its performance declining for a sixth month as economies in Asia and Europe joined the U.S. in recession, Eurekahedge Pte said.
“It’s very clear that there is going to be significant consolidation in the hedge-fund industry,” said Duncan Smith, a partner in Hong Kong at Ogier, a firm that provides corporate and legal services to financial companies. “Conditions are quite difficult and that really goes without saying. Underlying liquidity is very hard for funds.”
Market declines contributed to $18 billion in net losses, while investor redemptions made up $46 billion, Singapore-based Eurekahedge said, based on preliminary figures taken from 41 percent of the funds it surveys. It said hedge-fund assets shrank by $110 billion to $1.65 trillion in October.
Bloomberg - The global hedge-fund industry lost $64 billion of assets in November, with an index tracking its performance declining for a sixth month as economies in Asia and Europe joined the U.S. in recession, Eurekahedge Pte said.
“It’s very clear that there is going to be significant consolidation in the hedge-fund industry,” said Duncan Smith, a partner in Hong Kong at Ogier, a firm that provides corporate and legal services to financial companies. “Conditions are quite difficult and that really goes without saying. Underlying liquidity is very hard for funds.”
Market declines contributed to $18 billion in net losses, while investor redemptions made up $46 billion, Singapore-based Eurekahedge said, based on preliminary figures taken from 41 percent of the funds it surveys. It said hedge-fund assets shrank by $110 billion to $1.65 trillion in October.
Bloomberg – Asia hedge-fund closures jumped 19 percent this year, with the industry set to shrink for the first time as clients withdraw more money after funds in the region underperformed rivals in the U.S. and Europe.
“It is likely that we’ll see a net reduction in the number of Asian hedge funds through this current year,” Peter Douglas, principal of Singapore-based hedge fund consulting firm GFIA Pte, said in an interview yesterday. “Almost without exception, the managers that we talk to in Asia are seeing capital outflows, some of it is minor, some of it major.”
About 70 hedge funds in Asia have shut down as of August, an increase from 59 in the first eight months of last year, according to Eurekahedge. There are 618 Asia-focused managers managing 1,199 hedge funds, compared with 1,196 funds in December. Assets under management fell to $168 billion in August, from $176 billion at the end of 2007, according to the Singapore-based hedge fund research and publishing company.
Asia’s hedge-fund managers — more than half of whom trade only equities — have underperformed their U.S. and European counterparts whose more diverse strategies allowed them to profit from turmoil in financial markets. Asia’s hedge-fund average returns fell 12.6 percent this year, compared with declines of 0.1 percent in North America and 5.8 percent in Europe, Eurekahedge said. Asia gained 18 percent in 2007, outperforming both regions.
West Palm Beach (HedgeCo.Net)- Hedge funds have grown from as few as 300 funds in 1990 to more than 10,000 today. However, there has been a recent drop in new fund launches due to the recent credit crunch, closures and bankruptcy have dislodged talented managers who are now looking to start up investment pools of thier own.
Hedge fund hotels are playing an important role in the process of new hedge fund formation, giving talented yet little known managers a place to start from, while both minimizing costs and distractions to the investment process.
Companies such as HedgeCo LLC, a NY-West Palm Beach hedge fund service provider, has opened a hedge fund hotel in midtown Manhattan offering tenants a ‘plug and play’ solution, and features such as windowed offices, private workstations and team rooms.
"No other firm offers office space with as many benefits." Evan Rapoport, Co-Founder of HedgeCo, said, "We are pleased to be in the position to offer these servicies at this important time of growth in the hedge fund industry."
Following in the trend, KnowledgeSuites has opened a hedge fund hotel in Toronto and Eurekahedge in Singapore, there have also been stories of hedge fund hotels springing up in the Hamptons, as well as more in the Cayman Islands.
Hedge fund hotels typicaly come pre-furnished, with receptionist, conference room with plasma, copy machines, kitchen, bloomberg terminal, access to capital introduction events, conference passes and discounts on various hedge fund services, as is the case with HedgeCo’s Manhattan opening.
"Hedge fund hotels simply add incremental liquidity and opportunity into the investment landscape." Roger Ehrenberg of Information arbritage says, "If a manager can’t cut it, they fail and go home. If they do make it, however, riches are bestowed upon them…especially if the firm has the ability to seed top prospects and reserve future capacity."
West Palm Beach (HedgeCo.net)- Hedge funds started the second quarter of 2008 on a strong note as global stock markets recovered, according to Singapore-based hedge fund research company Eurekahedge.
"The Fed’s aggressive response to the weakness across credit markets and the slowing of economic growth in the U.S. went some way in improving investor sentiment during April," Eurekahedge said on their website.
"Rallying equity markets, on the back of a sharp increase in risk appetites, coupled with market reversals across some other asset classes, such as bonds and currencies, were factors responsible for the month’s gain," Eurekahedge said.
The MSCI World Index jumped 5% in April, completing the best month since November 2004, as confidence returned following the U.S. subprime loan crisis.
Eurekahedge pointed to Japanese managers as the best performers in April, with the Eurekahedge Japan Hedge Fund Index advancing 3.5%. The report showed similar gains with the Asia Ex-Japan index climbing 2.8%.
The Eurekahedge North American Hedge Fund Index added 1.5%, while the index tracking European hedge funds rose 1.4%. Managers of funds using so-called long-short equity strategies were the best performers because of gains in global stock markets.
Eurekahedge was launched by experienced members of the investment banking community for the hedge fund and investment community. The Eurekahedge Hedge Fund Index tracks the performance of 2,230 funds that invest globally.
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