Using Preqin’s brand new fund size benchmarks on Hedge Fund Analyst, with the outcomes of our interviews with about 300 hedge fund supervisors, we assess the result that fund size is wearing the entire hedge investment industry by examining overall performance, conditions and terms, and also the fund dimensions institutional people are seeking.
In July, Preqin included a a number of benchmarks to our Hedge Fund Analyst online service. These benchmarks, which assess the performance of hedge resources in line with the size of the investment, can be utilized in combination with this strategy, local, structural and money benchmarks. After the launch of the benchmarks, Preqin has turned its awareness of the end result of dimensions regarding the business, even as we take a look at just what size funds institutional people look for, provide a failure of the business by size and appear at how the overall performance of hedge funds varies by investment size. The outcome present this study are based on Preqin’s award-winning Hedge Fund on line service and June interviews with about 300 hedge fund managers.
Preqin’s Hedge Fund management Outlook recently revealed that 66percent of money in the industry today is sourced from institutional investors. As shown in Fig. 1, over four-fifths of institutional money is committed to hedge resources which have about $1bn in assets under administration (AUM). Even though the huge majority of institutional capital is concentrated in largest resources, investors retain an appetite for smaller funds. Fig. 2 reveals the breakdown of people by their minimal AUM demands of hedge resources before they'll give consideration to investing in all of them. Just 11per cent of people will think about spending exclusively in funds with over $1bn in AUM. Although a relatively tiny proportion (22percent) will give consideration to investing in funds with less than $100mn in AUM, over half (52percent) have at least requirement that lies between $101mn and $499mn.