COMBINED ASSETS OF BILLION-DOLLAR HEDGE FUNDSREACH $1.4 TRILLION,
MAGAZINE SURVEY FINDS
NEW INVESTOR ALLOCATIONS ACCOUNT FOR MAJORITY OF GROWTH ON SOFT INDUSTRY PERFORMANCE
New York, NY, October 3, 2011
American hedge funds reported a healthy increase in assets in
this year’s first half and now manage a combined $1.399 trillion. That’s $102 billion, or nearly
8%, more than they managed at the beginning of the year, according to the latest Billion DollarClub,
survey of American hedge funds managing $1 billion or more.Bridgewater took the top spot again, followed by J.P. Morgan Asset Management and Paulson &Co.Globally, hedge fund assets amount to $2.16 trillion, up slightly from the $1.82 trillion managedat the beginning of the year.Full results are available online at www.absolutereturn-alpha.com.
As of July 1, there were 241 American hedge fund firms managing assets of $1 billion or more,according to the survey, which appears in the October issue of
. That’s an increase since
January 2011, when there were 225 such funds holding a combined total of $1.297 trillion,according to the survey.While hedge fund assets have been slowly recovering, the industry remains down nearly 20%from its market peak in July 2008, when the biggest 268 American firms managed $1.675trillion.
The industry’s growth comes at a time when overall hedge fund perform
ance has been lackluster,indicating that most of the increase is due to new inflows from investors. Through the end of June, the AR Composite Index had gained 1.79% and stood at 0.42% at the end of August.
“Many managers are having a tough time posting substantial returns this year,” said Amanda
Cantrell, managing editor of
“The fact that investors are allocating more money to hedgefunds indicates a real recovery of confidence in the industry.”
Several big-name hedge fund managers decided to return external capital in the first half, butthose resulting industry losses were in part offset by several sizeable new launches and the