Market share in the hedge fund industry is increasingly being dominated by the top six players, The Financial Times reports.
A handful of hedge fund firms are emerging as the industry’s “superleague,” according to Huw van Steenis, head of the asset management and diversified financial divisions at Morgan Stanley.
“We see the ‘superleague’ taking share as larger platforms offer greater capacity, a broadening fund offering and fiduciary reassurance,” van Steenis said.
Firms that offer funds-of-funds seem to be benefiting the greatest. They include UBS, Man Group, Union Bancaire Privee, Permal/Legg Mason, HSBC and GAM/Julius Baer. Their assets under management have grown by 39% or more this year.
Last year, the 100 largest hedge funds accounted for 67% of the industry’s assets, up from 49% in 2003. Thus, established hedge fund platforms’ fundraising goals in 2006 fell only 6% short, compared to 21% in 2004.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.