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February 13, 2007
Fund Of Hedge Funds Flying Higher
Neither volatile markets, nor meltdowns such as Amaranth Advisors, not even average performance were able to sap the fund of hedge funds sector of its money magnetism last year, as the sector attracted more than $183 billion, way up from the $72 billion in 2005, according to the latest survey by the InvestHedge Billion Dollar Club Survey. Even though the sector gained only 8.67% in 2006, its asset growth rate of 29% was more than double the 13% of 2005, though a far cry from the 44% in 2004. "This was a surprising year as many had expected the impact of Amaranth to hit performance there asset flows in a bigger way," says editor Niki Natarajan of InvestHedge, a sister publication of Hedge Fund Daily. Natarajan noted further, "The asset outflow might be localized in a few firms in the coming months, but overall the new asset inflows from the first-time investors continues to be strong." What has changed is the rise of the boutique, as "investors start to look for something different, yet still in the fund of funds space."
-Hedge Fund Daily-
Posted by su at February 13, 2007 5:37 PM