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12 March 2012

WSJ: Smaller hedge funds reach the end of the road


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今年、ヘッジファンド業界には再編の波が押し寄せる。金融危機の中で発生した損失を取り戻すことができなかったファンドのうち、一部は身売りに、また多くは清算に踏み切るであろう。


The average hedge fund lost 19 per cent in 2008, was up 20 per cent in 2009 and 10.3 per cent in 2010, and lost 5.3 per cent last year, according to data provider, Hedge Fund Research, and funds of funds were worse. Credit Suisse said in January that two-thirds of hedge funds are below their high watermarks: the level at which they can start charging performance fees. It estimates that 13 per cent of hedge funds have not earned any performance fees since at least 2007.

Struggling managers are increasingly competing with new rivals, spun out of other hedge fund management firms or investment banks' prop trading desks. When choosing between established firms, investors are favouring larger managers - with roughly 70 per cent of net new money last year going to firms managing more than $5 billion in assets under management, according to Hedge Fund Research. For many smaller firms, shutting down will be the only option.

An investment banker specialising in financial services M&A said: "Hedge fund management firms are difficult to sell because their investors are not loyal. Many hedge fund managers that have not been performing well, and fund of hedge funds managers will find they have no other option but to throw in the towel".

Full article



© Wall Street Journal


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