Hedge fund industry finding even keel, Credit Suisse/Tremont report suggests

An analysis of the hedge fund industry’s first-quarter activity indicates that the $1.3 trillion industry is stabilizing, according to Credit Suisse/Tremont Hedge Fund Index LLC in New York.
MAY 07, 2009
An analysis of the hedge fund industry’s first-quarter activity indicates that the $1.3 trillion industry is stabilizing, according to Credit Suisse/Tremont Hedge Fund Index LLC in New York. While total industry assets under management declined by $163 billion during the quarter, the index posted a three-month gain of 0.9%. This compares to a 13% decline by the MSCI World Index and a 3% decline by the Barclays Global Aggregate Bond Index in the first quarter. The Standard & Poor’s 500 stock index fell by 11.7% in the first quarter. Liquidity, transparency and fees have emerged as investors’ top concerns, according to the report. Through the end of March, 17% of all hedge funds were classified as being impaired, meaning restrictions had been placed on redemptions. The increased demand for liquidity could result in a bifurcation of liquidity terms across different strategies, according to the report. The report also stated that some strategies, such as global macro and long/short equity are likely to offer regular liquidity, while fixed income arbitrage and event driven strategies are not expected to provide as much liquidity. In 2008, 19% of all U.S. hedge funds were liquidated. This compares to an 8% annual average liquidation rate for hedge funds between 1994 and 2007.

Latest News

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

Allworth deepens tax-advisory push with $1.1B Sachetta acquisition
Allworth deepens tax-advisory push with $1.1B Sachetta acquisition

The PE-backed RIA makes its first major move since bringing in a new capital partner, adding a Massachusetts advisory firm alongside a second East Coast RIA

Hightower Signature Wealth grows by $2.5 billion with Stearns deal
Hightower Signature Wealth grows by $2.5 billion with Stearns deal

Stearns Financial Group's addition brings 30 advisors and three decades of North Carolina planning experience to the platform.

Edward Jones backs senior protection rules after $3 million account freeze
Edward Jones backs senior protection rules after $3 million account freeze

An 86-year-old from Dallas tried to withdraw funds from his account, but Edward Jones invoked a FINRA-backed temporary lockout before he eventually left for Merrill Lynch.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income