Citi: Hedge Fund Profits Plunge, Small Funds Hit Hardest Jan 30 2015 | 4:44am ET Profits in the hedge fund industry are set to decline by 30% due to poor performance in 2014, according to a recent survey by Citi. While hedge fund industry profits in 2013 reached $31.2 billion, poor performance in 2014 cut that figure by 30% to only $21.9 billion, a loss of nearly $10 billion, Citi estimates in their Third Annual Hedge Fund Industry Operating Metrics Survey. Institutionalization of the hedge fund investor base has shifted the profitability ratios of the industry, Citi notes. Profits derived from management fee revenues now equal profits from performance fee revenues in years like 2013 when managers meet institutional targets of 10% annual returns. “Management fee revenues have become an increasingly important part of the industry’s profit base in recent years,” said Sandy Kaul, global head of business advisory services at Citi. “Lower institutional return targets and concerns about excessive volatility make it more difficult for managers to earn outsized performance fees. With AUM at record highs, profits from management fee revenues now account for a larger share of total profits, coming in at nearly 2.5 times performance fee profits in years when performance is down such as in 2014.” http://www.finalternatives.com/node/29795
There is too much capital chasing too few edges in the traditional hedge fund universe. Smaller, capacity constrained niche funds not on Citi's radar are performing handsomely. surf
LOL The thing that really stuck me is more and more retailer (especially those under capital) are moving to the bucket shops, and the rate that those retailer blow up is much higher due to the insane leverage.
California edges out Connecticut, Massachusetts and Illinois, claiming #2 spot on the Top States for Hedge Funds List February 2nd, 2015 The rankings for the states that house the most Hedge Funds has been released, revealing that California has more hedge funds than Connecticut, Massachusetts and Illinois, with 11% of all hedge funds on the list calling the Golden State their home. While California topped Connecticut by number of hedge funds, CT-based funds still manage a greater percentage of the total U.S. equity assets under management, with CT overseeing 13%, as compared to CA’s 7%. Not surprisingly, New York State is once again the top state by a landslide, housing 53% of U.S. located hedge funds. The top cities on this quarter’s list include New York, Greenwich, Boston, San Francisco, Chicago and Dallas. Hedge Tracker releases a series of top hedge fund lists on a quarterly basis. To view the regional hedge fund lists in their entirety, please visit the Top Hedge Fund List ranking portal.
Top Emerging Hedge Fund Managers up 30%; Corvex, Pointstate, & Soroban claim Top Spots January 12th, 2015 The Top U.S. Equity Emerging Hedge Fund Managers now manage $78.5 billion in U.S. equity assets, having seen their equity assets jump by nearly $18 billion during 2014. 56% of the hedge funds on the list saw their assets increase over the third quarter. Leading the top gainers were Voloridge Investment Management (+$1.1B), Marcato Capital Management (+$925M) and Myriad Asset Management (+$585M) The Top Emerging Manager List is led for the third consecutive quarter by #1 Keith Meister’s Corvex Management. The Event-Driven focused hedge fund reported equity assets of $7.2 billion. Long/short equity focused Soroban Capital Partners reported equity assets of $6.4 billion at the end of the quarter, which was enough for it to steal the number two spot on the list from PointState Capital. Soroban Capital, which is led by Eric Mandelblatt, Gaurav Kapadia and Scott Friedman, launched its flagship hedge fund in 2010. Before founding the NYC-based firm, all three founders worked together at TPG-Axon Capital. Global Macro specialist PointState Capital claimed the third spot the list, having fallen one spot Quarter-Over-Quarter. Zach Schreiber’s PointState Capital reported equity assets of $5.3 billion. Ranking Methodology: The Top U.S. Equity Emerging Manager Hedge Fund rankings are compiled on a quarterly basis using hedge fund firms’ overall U.S. equity assets. The Emerging Hedge Fund rankings include firms that were launched in 2009 or later. To view the list in its entirety, please visit Hedge Tracker’s Hedge Fund Portal.
Mid-Sized Hedge Funds Batten down the Hatches, Squeak out a 0.5% Gain January 14th, 2015 After a less than stellar Q2, the top Mid-Sized Hedge Funds successfully navigated the last quarter, seeing their assets jump by $377M. The Top Mid-Sized Hedge Funds now oversee a combined $68.5 billion in US equities. Valiant Capital Partners, Mount Kellett Capital Management and Kylin Management LLC lead this quarter’s list. Global long/short equity focused Valiant Capital Partners, which reported assets of $836M, is run by Chris Hansen. Prior to launching Valiant Capital, Hansen worked for seven years at John Griffin’s Blue Ridge Capital. While Valiant made a name for itself among investors for its early stake in Facebook, netting a supposed $1B+, its founder is probably better known by sports fans for his failed attempt to purchase the NBA’s Sacramento Kings in 2013. Twenty-six funds on the Top Mid-Sized Hedge Fund list saw their equity assets increase by more than $50 million over the latest quarter. Leading the way were Myriad Asset Management, Segantii Capital Management and HG Vora Capital Management LLC. Fourteen sector focused hedge fund managers made the list, with nearly $10 billion in assets. The sector focused managers have a range of industry focuses, including: Energy, Financials, Healthcare, Technology and Tech-Media-Telecom (TMT) . Ranking Methodology: The top 100 Mid-Sized Hedge Fund rankings are compiled on a quarterly basis using hedge fund firms’ overall U.S. equity assets under management. The list includes the top hedge funds with less than $850 million in U.S. equity assets. To view the Top 100 Hedge Fund list in its entirety, please visit the premium Hedge Fund Portal.