WEST PALM BEACH, FL (www.hedgeco.net) – A new study conducted by Credit Suisse First Boston shows that hedge funds helped to push Investment Bank revenues up in 2004. According to the study,investment banks gained about $25 billion from its hedge fund related revenues, generally resulting from Hedge Fund�s extensive trading activities. Such revenues from hedge funds account for aboutone-eight of the total global revenues received by investment banks during the 2004 investment calendar.
Hedge funds are the most active players in the markets the study further noted even though their assets are considerably smaller that those of mutual funds, {about 10%}. According to the study, hedge fund activities accounted for nearly seventy percent of the total daily activity in the US Exchange-traded funds, and distressed debt markets, as well as in the convertibles market.
While Hedge fund critics often charge that hedge fund activities are dangerous to the health of the markets, such criticisms often fail to reflect news such as this increased liquidity, which hedge funds bring to the markets. The study also noted that hedge funds account for a total of nearly one-half of the daily activity in the leveraged loan markets, the New York Stock Markets, and the London Stock exchange.
The new Credit Suisse First Boston study also estimates that Morgan Stanley and Goldman Sachs combined, control nearly fifty percent of the global prime brokerage obligations. The reports also cited UBS AG (UBS) as the largest hedge fund manager in the world; the group oversees about $46 billion in combined assets under management.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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