WEST PALM BEACH, FL (www.hedgeco.net) – Van Hedge Fund Advisors International, LLC (“VAN”) has released a detailed new study about the current state of the hedge fund industry according to BusinessWire. The new report called Hedge Fund Demand and Capacity 2005-2015 took a look at the global hedge fund industry, evaluating the demand capacity issues.
Among other conclusions, the report also confirmed what has been widely acknowledged that the level of assets managed by the global hedge fund industry has surpassed $1 trillion. It also concluded that by the year 2009, the total hedge fund assets will at least double and may quadruple to about $4 trillion by the year 2013.
George Van, Chairman of VAN International LLC said, “We believe that these projections are conservative, demand for hedge funds is at unprecedented levels and the worldwide capacity for hedge funds is growing. It took the mutual fund industry 66 years to attain $1 trillion in assets. It has taken hedge funds ten years less to reach the same level.”
Van added, “Mutual funds grew more than fourfold in the seven years between 1990 and 1997, after they had reached $1 trillion in assets. Hedge funds are in the same growth mode. While they currently are private investments, hedge funds will become public securities in various forms. This will accelerate their growth.”
He also said that fundamental factors are driving hedge fund growth forward, noting that hedge funds provide its investors with absolute returns; VAN believes that hedge fund growth and demand will grow together in the coming years. He said, “Ask the long-time sophisticated hedge fund investors such as Harvard, Yale, the University of Virginia, large family offices and Swiss banks whether they agree that hedge funds produce better performance. Ask also the many institutions that are now investors in hedge funds because their long-only investments plummeted up to 40% in the recent bear markets while hedge fund investments preserved capital. The hedge fund industry has grown steadily for 17 years. While it will take at least another year for it to fully digest recent massive capital inflows, growth will then again accelerate.”
VAN also explained that perceived obstacles to hedge fund growth are not problematic; such perceived obstacles like high fees, low liquidity, low transparency and leverage do not pose long term problems for the industry.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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