Peter Clarke, chief executive officer of the Man Group, told Reuters that if asset flows to his company are any indication of the outlook for the hedge fund industry, investors will continue to pour assets into hedge funds.
“I’d say there is no current indication that industry growth rates will materially change,” Clarke said. “I can only speak for Man Group [in that] we have not seen significant rates of redemptions. We continue to see institutional appetite for products.”
Nonetheless, the average hedge fund lost 1.53% in August, according to the Credit Suisse/Tremont Hedge Fund Index. Acknowledging the difficulties that securities tied to subprime loans caused many hedge funds, Clarke said that some investors may now be more cautious about “the underlying content” of strategies.
Man Group now manages $68 billion of the total $2.5 trillion invested in hedge funds worldwide.