Hedge Fund Assets to Increase by $500 Billion, Says Laureate Trust
Money from Europe and Asia are pouring into top performing hedge funds.
Online, April 10, 2010 (Newswire.com) - April 10 (Bloomberg, Laureate BVI) - Global hedge fund assets are expected to return to the pre-financial crisis peak of almost $2 trillion by year-end, encouraged by investment profits and capital infows, according to a Credit Suisse Group AG survey.
The Zurich-based firm polled about 600 institutional investors worldwide with about $1 trillion of invested hedge fund assets.
After two years of dormancy, BVI hedge funds are growing once again. "We are seeing a significant amount of fund formation," said Philippe Teilhard de Chardin, global head of prime brokerage at Newedge, a Paris-based firm.
Benjamin Happ, Hong Kong-based Asia-Pacific head of capital services in Credit Suisse's prime services division says, "The best hedge funds have demonstrated their ability to outperform both rising and falling markets."
Last month, Wall Street sat up and took notice when BVI-based Laureate Trust which only accepts €1 million minimum investment into its funds, launched a retail fund with a €2,500 minimum investment. CEO Peter Tasca says, "We've had huge demand for our retail fund. We've spoken to investors that have lost anywhere from €30,000 to €30,000,000 over the last two years and want a fund that can profit in any market environment." Laureate BVI Fund returned 42 per cent in 2008 amid the global financial crisis with their market neutral strategy and returned 33 per cent in 2009.
"Investors are taking a more selective, thoughtful approach and concentrating their investments with the managers in whom they have the greatest degree of trust," Happ said.
Worldwide, investors initial investment in a fund averages $18 million, with long-term holdings of $33 million, the survey found.