The single-manager hedge fund industry recovered in 2010 with assets under management (AuM) increasing 11% over 2009 to $1.6 trillion, according to PerTrac, a provider of analytics, reporting and communications software.
In its study of hedge funds, released today, the firm also says 1,184 new funds were launched in 2010, representing a 51% increase over the prior year. Total AuM for single-manager hedge funds and fund of funds was $2.1 trillion in 2010.
PerTrac says fund of funds continue to see a decline in AuM. The 3,196 funds of funds in the study approximately the same number as in 2008 had $518 billion under management in 2010. That represents a 10.5% decrease from 2009 and a steep 31% decline from 2008, when $750 billion was reported.
Data from Preqin, another research company, claim the overall funds of funds industry had assets of $910 billion as of the second quarter of 2011. Preqin noted a drop from the $1.25 trillion it says funds of funds had in their peak in 2008. (To read about the Preqin report, visit Global Custodians sister publication, aiCIO.)
As we look across the fund universe, one clear area of growth has been in the number of single-manager hedge funds, and we see that momentum continuing in the future, says Lisa Corvese, managing director of global business strategy at PerTrac. Overall, the study demonstrates a rebound — with the industry as a whole getting closer to prior peaks.
The newly launched GlobeOp Capital Movement Index, which tracks subscriptions and redemptions of the administrators hedge fund clients, was relatively flat this March and April.
Other key findings in the PerTrac study, which has been conducted annually since 2003, show that:
– There are 9,572 single-manager hedge funds.- Almost half (3,763) of the reporting single-manager funds have less than $25 million in AuM.- Single-manager funds are growing in AUM with 73% reporting less than $100 million in AuM in 2010 compared to 79% in 2009.- Most fund of funds are small with just 108 (3.3%) reporting AuM of greater than $1 billion and 70% reporting less than $100 million AuM and almost 42% reporting less than $25 million AuM.
The full PerTrac study can be found here.