31/05/2007

Hedge fund assets shoot up by $500bn in six months

Hedge fund assets have hit the $2.5trn mark according to HFMWeek’s eighth Hedge Fund Administrator Survey. HFMWeek’s seventh survey reported assets in the industry had reached a record $2trn in November last year. Single manager assets have increased by 37% since April 2006, dipping from the 53% growth reported between November 2005 and November 2006. Overall figures from previous surveys show that assets in the industry seem to boost towards the end of the year.

In the past six months, overall hedge fund assets have grown by 17%, fund of hedge funds (FoHFs) by 18% and total combined AUA has risen by 17%. However, the eighth HFMWeek’s Hedge Fund Administrator Survey is the most extensive yet, with an additional 15 new participants since November 2006.

Industry figures excluding new participants have grown by 14% for single manager hedge funds, 15% for FoHF and 14% for the combined total.

CITCO Fund Services came out on top again with $390bn in single-fund AUA –  the mammoth administrators’ total AUA has surpassed the significant half trillion dollar mark. Fortis Prime Fund Solutions led the FoHFs pack increasing from $134bn to $170bn in AUA.

Participants in the survey included the usual suspects CITCO, HSBC, BISYS, IBTCO and IFS State Street as well as newcomers Citadel Solutions, bringing $14.10bn to the table and OpHedge, the largest newcomer, with $20.9bn in single manager AUA.

A record total of 66 participants, continues to make HFMWeek’s survey the most transparent and complete hedge fund administrator survey compiled to date.

Click here to view or download the full survey (subscribers only)