This is part of a special report on hedge funds that can be
seen here: link.reuters.com/nux58r
NEW YORK, March 17 Money is pouring back into
hedge funds, and global assets under management in the industry
are nearing their 2008 peak again. But hedge fund investors are
allocating their capital differently, and have more power than
Here are some of the numbers behind the shift:
* Investors allocated some $149 billion to them in the
fourth quarter of 2010 -- the largest quarterly increase in
assets ever recorded, according to Hedge Fund Research. The
previous record increase was an inflow of $140 million in the
second quarter of 2007.
* With $1.92 trillion in assets under management at the end
of last year, the global hedge fund industry is fast headed
back toward its all time peak of $1.93 trillion in the second
quarter of 2008. It had shrunk to $1.3 trillion in assets in
the first-quarter of 2009.
* Investors expect to put some $200 billion into hedge
funds in 2011, taking the industry to more than $2 trillion in
assets this year, according to a survey by Deutsche Bank this
month. But even though money is coming in, it is not arriving
from the same sources.
* Half of all households with more than $25 million in net
worth had investments in hedge funds last year, compared to
just 35 percent in 2007, according to a survey from Spectrem
* Funds of hedge funds, which represented nearly half of
hedge fund investors at the peak, are now just about a third of
overall hedge fund investors.
* The number of pension plans investing in hedge funds has
grown more than 50 percent since 2007. There are now 295 public
pension plans that are known to allocate assets to hedge funds,
up from 196 in 2007, according to research from hedge fund
tracker Preqin this week. The mean amount of assets that
pension funds dedicate to hedge fund assets has also climbed
from 3.6 percent to 6.6 percent over the same period.
* Hedge fund behemoth Och-Ziff Capital Management
(OZM.N), has about $28.4 billion in assets under management,
but said on a conference call with investors this month its
average management fee is 1.7 percent, below the 2 percent
* Over 80 percent of new assets in the hedge fund space
were allocated to firms with more than $5 billion in assets
under management in 2010, according to Hedge Fund Research.
* In the third quarter of 2010, 260 hedge funds were
launched and 168 hedge funds were liquidated, according to
Hedge Fund Research. In the fourth quarter of 2008 at the
height of the financial crisis, 56 hedge funds were launched
and 778 were liquidated.
* SkyBridge Capital, a firm that focuses on seeding new
hedge funds, looks at 600 to 700 presentations from funds each
year, but only selects three or four of those to fund with $25
million to $50 million investments. Bankers estimate there is
only about $2 billion to $3 billion of dedicated seed capital
available in the industry.
(Reporting by Emily Chasan; Editing by Claudia Parsons)