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Hedge funds’ assets are likely to fall by over 20 per cent in 2009, IFSL predicts in its annual Hedge Funds Report. The surge in withdrawals at the start of the year came as restrictions on redemptions in some hedge funds, particularly in the US, were lifted.
Assets under management of the global hedge fund industry fell by nearly 30per cent in 2008 to $1,500bn. The decline, the biggest on record, was due in equal measure to negative performance and withdrawals. The average hedge fund lost 15.7 per cent in 2008, the worst performance on record.
New York remains the leading global location for management of hedge fund assets with a 42 per cent share in 2008, slightly up on the previous year due to bigger redemptions in Europe. London is the second largest centre with 18 per cent, nearly double its share in 2002.