Funds Hub
Money managers under the microscope
A mixed picture
Results from fund firms GAM and Jupiter this morning provide some interesting insights into the different drivers of the hedge fund industry.
GAM, which saw profits tumble last year as clients pulled out of its hedge funds, recorded net inflows into these portfolios for the first time in two years, showing that, despite market volatility and investor caution, there is money out there looking for a home and that a firm can still reverse its fortunes in this climate.
Jupiter, on the other hand, saw net inflows across its mutual funds but suffered a net 36 mln stg outflow in the first half from its hedge funds, showing that some funds are still losing hedge fund assets despite overall industry inflows.
There are plenty of drivers of flows in the industry at present – money has been coming in slowly, but generally to the bigger, better-performing firms, helped by the industry’s increasingly institutional client base. Meanwhile, Ucits funds provide a potential boost to the industry, but are they simply cannibalising offshore hedge funds’ assets?
Morning Line-Up: Tories, TPG, GAM
News and views on the fund industry from Reuters and elsewhere:
Hedge fund boss gave Tories £500,000 during election – Guardian
GAM H1 profit rises as hedge funds recover – Reuters
Indian father, son face lawsuit in U.S. over hedge funds – Economic Times
TPG launches second yuan fund in China’s Chongqing – Reuters
Moody Aldrich and Wilshire launch hedge fund seeding platform – HedgeWeek
Way Group launches Absolute Return Portfolio fund – HedgeWeek
Morning Line-Up: Lehman rises from ashes, helpful hedgies sought
News and views on the fund industry from Reuters and elsewhere:
Lehman given go-ahead for new asset management company - Reuters
PIMCO calls for money market fund reform - Reuters
Altin ups macro allocation to 20 pct – HedgeWeek
GAM adds EM currency fund to UCITS range - Fund Strategy
SEC seeks hedge fund monitors - The Seattle Times
Brighter times ahead?
Funds of hedge funds have had a tough time recently.
Losses of 21.37 percent last year helped persuade clients to withdraw a net $50 bln in the fourth quarter and a further $85 billion in the first quarter of this year, according to HFR.
Funds of funds weren’t helped either by the speed with which private clients — who often hold these portfolios rather than the underlying fund – pulled out of the asset class.
