Hedge Fund Assets Grew, Sort Of

Posted by Bull Bear Trader | 4/17/2008 08:10:00 AM | | 0 comments »

Hedge fund assets were up 27% from last year, according to HedgeFund Intelligence. While hedge funds did record about an 8% return in a difficult market, more than two-thirds of the asset increases came from new investors - primarily institutional investors allocating new money into "funds of funds." Of interest is how 391 funds have assets greater than $1 billion, with this figure representing around 80% of the total industry assets. Of these large funds, 255 are in the U.S., with New York alone having $973 billion in hedge fund assets under management. Given the standard 2-20 structure (admittedly not used by all), the 2% asset fee would generate a starting point of about $19.5 billion in revenue for New York funds alone.