WEST PALM BEACH, FL (www.hedgeco.net) – Reuters Inc. plans to acquire two hedge fund related operations according to company statements. The deal involves the Reuter�s wholly owned subsidiary; Lipperwhich is planning to buy two hedge fund businesses, TASS(R) Research from Tremont Capital Management, and HedgeWorld. TASS Research operates a hedge fund database, while HedgeWorld provides hedgefund news and data to the hedge fund investment community.
Commenting about the planned purchase, the Chief executive of Lipper, Michael Peace said, “We have been approached by financial advisors and distributors whose institutional clients are clearly asking for intelligence on hedge funds.� Such interest by Reuters on the exploding hedge fund business signals the importance of the growing of hedge funds as a mainstream asset class.
Over the years the hedge fund business experienced a significant growth in its managed assets, today most hedge fund analysts and databases report that the global hedge fund managed assets have surpassed $1 trillion mark. Such boom is also being encouraged by the demand of hedge fund products stimulated by institutional investors.
According to published reports, about 40% of institutional investors have allocated investment assets to hedge fund managers. The demand of hedge funds by institutional investors is being propelled by the endowments and foundations, followed by pension fund managers. The endowments and foundation groups have to date invested about 12% of its assets in hedge funds; some have invested over 40% of their assets to hedge funds. Pension funds on the other hand have on the average invested about 3% of their assets into hedge fund management vehicles. About 15% of all pension fund organizations have invested with hedge fund managers.
Reuters did not immediately provide details of the planned acquisitions, but Tremont co-Chief Executive Robert Schulman said, Tremont will continue to collect hedge fund data, which will in turn be used by asset management business. Tass Research is one of the largest hedge fund data bases, other firms with large hedge fund databases includes, Hedge Fund Research, Hennessee Group LLC, and HedgeCo.Net
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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