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?

Brighter times ahead?

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Funds of hedge funds have had a tough time recently.

rtr257enLosses 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.

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