Bad News Continues For Fund Managers

In the latest report detailing the free fall of hedge funds, a new study by Watson Wyatt shows that total assets under the world's 500 largest fund managers grew by its lowest rate in five years. In 2007, the assets

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In the latest report detailing the free fall of hedge funds, a new study by Watson Wyatt shows that total assets under the world’s 500 largest fund managers grew by its lowest rate in five years.

In 2007, the assets rose about 9 percent, from $63.7 trillion to $69.4 trillion. That’s far below the 19 percent growth rate of 2006.

2007 was a year of two distinct parts; the first part saw buoyant markets which drove asset gains, the second saw most of these erased. The largest firms, normally the main beneficiaries of growth, grew at the lowest rate compared to the other firms since the survey began ten years ago. Certain medium-sized boutique firms, particularly those running alternative assets, would have added significant assets during the year, as would have some passive houses. said Craig Baker, global head of manager research at Watson Wyatt.

For the full report, click here.

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