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Bloomberg – Hedge-fund assets increased by about $34 billion in September, a fifth straight monthly gain, helped by improved investor confidence and global stock market gains, Eurekahedge Pte said.
Net inflows into hedge funds totaled $15.1 billion in September, while performance-based gains made up $18.7 billion, bringing total assets under management to $1.43 trillion, the Singapore-based research firm said in a report posted on its Web site today. The Eurekahedge Hedge Fund Index, tracking more than 2,000 funds globally, gained 2.6 percent in September, bringing its year-to-date advance to 16 percent.
Reuters – Rising markets and a fifth straight month of investors adding money pushed hedge fund assets close to $2 trillion in September, according to industry research firm HedgeFund.net.
Globally, hedge fund assets rose nearly 3 percent last month to $1.95 trillion, a net increase of $56.4 billion from August. The bulk of the increase came as stocks, bonds and other assets rose in value.
Total assets peaked at $3 trillion in spring 2008, according to HedgeFund.net, whose industry asset estimates are significantly higher than those of rival hedge fund trackers.
Bloomberg – Asian hedge funds will attract a “wave” of new money that could more than double the industry’s assets from its peak of $250 billion as the region leads the world’s emergence from the deepest recession since World War II, according to GFIA Pte.
The industry in Asia will grow to two-to-three times its peak within the next five years as investors outside the region with little or no investments in Asian alternative strategies allocate to the funds, said Peter Douglas, principal of GFIA, a Singapore-based hedge-fund consulting firm. The industry has shrunk by about 30 percent from the peak reached in the first half of 2008 following client withdrawals, he said.
New York (HedgeCo.net) – There has been a continuing decline in global hedge fund industry AUM during the first half of 2009, slipping a further 8.5% during the first half of 2009 to reach a total figure of $1.67 trillion by July, according to the latest research conducted by HedgeFund Intelligence (HFI).
From a peak figure of almost $2.7 trillion reached during the first half of 2008, global hedge fund assets have now fallen by some 38%. In the first half of this year, however, performance was generally robust, with a median return from hedge funds globally of over 5%. This implies that net redemptions from hedge funds were continuing at a fairly rapid rate between January and June – with as much as 15% of investor money being pulled from the industry during the first half, and the further overall decline only partially offset by positive performance.
Neil Wilson, editorial director at HedgeFund Intelligence, said “Following a period of strong performance during the third quarter and plenty of anecdotal evidence that the majority of funds have begun to see net inflows again, we would not be surprised to see industry assets rise from the midyear levels by at least 10% before the end of
2009.”
During the first half, the number of firms that run hedge fund assets of $1 billion or more went down from 395 in the first half of 2008 to 311 at the beginning of 2009 and now to 291 at the mid-year point. The combined assets of these ‘billion dollar club’ firms also shrank further – from $1.46 trillion in January to $1.37 trillion by July.
New York remains by some distance the top global centre for hedge funds. Though New York’s total number of billion dollar firms slipped a little, from 123 to 118, during the first half, its share of assets remained almost unchanged at nearly 47%. London is still comfortably the second biggest centre, but its number of billion dollar firms dropped more steeply in the first half – from 65 to 55, as several UK-based firms slipped below the $1 billion mark. London’s share of the global billion dollar club’s total assets thus slipped from over 17% to under 15%.
Connecticut is still in third place, with a share of assets slightly up at nearly 10.5%. The figures for other global hedge fund centres were largely unchanged, with centres on the increase this year including Hong Kong and Singapore.
Blomberg – Hedge-fund assets increased by $21.4 billion in August as managers completed their best year- to-date return in almost 10 years, driven by rising stock markets amid signs of economic recovery, Eurekahedge Pte said.
Assets grew for a fourth straight month, adding about $100 billion, the largest sustained growth period since the end of 2007, the Singapore-based research firm said in a report posted on its Web site. Net inflows into the industry totaled $12.6 billion in August, while gains through performance were $8.8 billion, bringing total assets under management to $1.38 trillion, the firm said.
Guardian – Scottish fund firm Martin Currie is seeing investors put money into its hedge funds at a faster rate than before the credit crisis, an executive told Reuters, in another sign the industry is reviving. After $300 billion of net client outflows between October and June, there are tentative signs investors are returning to a sector where performance has turned around sharply since 2008′s record losses.
Andy Sowerby, managing director of sales, marketing and client service at Martin Currie, which runs $1.2 billion in hedge fund assets, said inflows were at or above levels seen in late 2006 and early 2007, when the industry was near its peak.
Bloomberg – Brazilian money managers will open more funds targeting real estate, private equity and corporate debt as record low interest rates reduce demand for government bonds, said Jose Luiz Osorio de Almeida Filho, a former chief securities regulator.
Investors pulled 7.8 billion reais ($4.3 billion) from funds tied to interest rates this year, reducing their portion among total fund assets tracked by Brazil’s investment association to 14 percent, the lowest level on record. Hedge funds, asset-backed commercial paper funds, stocks and fixed- income funds attracted money after policy makers cut rates five times this year, according to the association, known as Anbid.
George Town, Cayman Islands – The increase in value was driven by positive sentiment in the underlying equity markets despite a slow start at the beginning of August. Earnings reports were better than analysts expected and high yielding currencies strengthened on an average of 5.4% over the dollar.
For the third month in a row hedge fund assets have grown, along with other alternative investment options. More investors are realizing the benefits of hedge funds as the major stock indices fall well behind in portfolio earnings.
Regional managers reported consistent gains across most locations as did emerging markets. What has shifted is the life insurance settlement fund, which is responsible for the majority of recent value increases. Originally predicted to show large returns in 2006-2007, these strategy funds are finally starting to show their worth. Managers are forecasting insurance settlement funds to drive earnings far higher than originally expected.
About GHF Group
Global Hedge Fund Group Ltd. (GHF Group) has been developing customized alternative investment solutions and providing corresponding advisory services since 2000. Our priority lies with hedge funds and private equity. All products are designed to provide sustainable and above-average rates of return. Instability and risk are reduced by well-structured investment strategies whose clarity and success are established. Our team of competent professionals has the distinction of reliability, effectiveness and promptness.
GHF Group’s expertise in hedge funds is enhanced by a close association with leading research firms, successful hedge fund managers, and brokerage houses whose macro research gives its research team an edge in understanding world market trends, enabling them to make better hedge-fund allocation decisions.
Cayman Compass – The average hedge fund recorded gains of 2.42 per cent in July data released by hedge fund data provider Hedge Fund Research shows. Hedge fund assets have increased on average by more than 12 per cent in the first seven months of this year. In July the increase was driven by higher equity market returns, Hedge Fund Research said.
July was the fifth month of consecutive gains for the industry, which lost a record 19 per cent overall in 2008. While the hedge fund industry currently experiences its best year since 1998, most fund manager have not yet recovered from last year’s losses and record redemptions in the final quarter of 2008.
Cayman Compass – The average hedge fund recorded gains of 2.42 per cent in July data released by hedge fund data provider Hedge Fund Research shows. Hedge fund assets have increased on average by more than 12 per cent in the first seven months of this year. In July the increase was driven by higher equity market returns, Hedge Fund Research said.
July was the fifth month of consecutive gains for the industry, which lost a record 19 per cent overall in 2008. While the hedge fund industry currently experiences its best year since 1998, most fund manager have not yet recovered from last year’s losses and record redemptions in the final quarter of 2008.
The Boston Globe – Hedge funds are having their best year since 1998, yet most fund managers still are well below their peaks before the market’s meltdown last year, industry analysts said.
Hedge fund assets rose 2.5 percent in July, contributing to a 9.9 percent climb over the first seven months of the year, and the best year-to-date results since 1998, Credit Suisse/Tremont Hedge Fund Index said.
Bloomberg – Hedge fund assets increased by $10.6 billion in July, rising for a third straight month, as managers trading shares benefited from global stock market gains, according to Eurekahedge Pte.
Net inflows into the industry totaled $2.1 billion, while gains through performance were $8.5 billion, bringing total assets under management to $1.35 trillion, the Singapore-based research firm said in a report posted on its Web site.
Hedge fund managers are making a comeback after suffering their worst year on record in 2008, as stock markets recover amid optimism that stimulus measures will help put an end to the worst of the global economic recession. The MSCI World Index jumped 8.4 percent in July, bringing its year-to-date advance to 14 percent.
