25/06/2008

FoHF Assets climb to $1.4trn, says HFMWeek survey

Funds of hedge funds (FoHF) now make up around a third of total hedge fund assets, according to the FoHF edition of the 10^th Biannual HFMWeek Hedge Fund Assets Under Administration Survey.

FoHF assets have reached $1.4trn, with investments from institutions and sovereign wealth funds a key force driving the 10% growth over the past six months. “Institutions are continuing to invest in alternative funds, albeit more cautiously, given market conditions,” said John Alshefski, senior vice-president and managing director at SEI’s Investment Manager Services division, commenting on the hedge fund industry’s slowdown in growth compared with previous years.

Fortis Prime Fund Solutions topped the FoHF assets under administration (AUA) table with $215bn, with single hedge fund assets winner Citco Fund Services close behind with $188bn in FoHF AUA. Citco, the largest global fund administrator reported $482bn in single manager hedge fund assets in the single manager edition of the survey published at the beginning of this month. Total industry assets have reached $4.4trn.