Funds Hub

Money managers under the microscope

Brighter times ahead?


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.

But perhaps the hammer blow was Madoff — ironically not a hedge fund but nevertheless not spotted by some of the big funds of hedge fund firms, including RMF and UBP.

However, according to S&P Fund Services’ Randal Goldsmith, funds of hedge funds are once again seeing net client inflows, helped by this year’s pick-up in performance.