WEST PALM BEACH, FL (www.hedgeco.net) – U.S. Hedge Fund industry experts believe that the current low and lagging returns by hedge funds will not derail the new asset inflows into hedge fund managedvehicles. According to such sources, despite such slow down, the asset growth in hedge funds is continuing. Total assets managed by the global hedge fund industry have since surpassed $1 Trillion. Infact some hedge fund industry tracking firms have put that number near $1.5 Trillion.
Part of the reason why experts believe the low returns won�t stop new money from flowing into hedge funds is that hedge funds have been today accepted as mainstream investments. Conservative money managers such as pension funds and endowments have embraced hedge fund management vehicles; as a result more assets continue to move from traditionally managed vehicles into the arena of hedge fund management.
Experts made such remarks at the Managed Funds Association meeting. The chairman of MFA, Adam Cooper, who is also a senior managing director of Citadel Group, a Chicago-based fund, said �I don’t see the industry growth patterns altering dramatically.� Other industry leaders also echo Mr. Cooper�s predictions.
The keynote speaker for the event Mr. Frank Meyer predicted that some hedge funds may agree to be bought by larger managers in what appears to be a consolidation period for the global hedge fund industry. Meyer also said that there is the possibility that mature hedge fund managers may go public following the example of Man Hedge fund Group, a London based hedge fund manager.
The President of MFA, Mr. John Gaine said that hedge funds are often blamed for all the ills in the markets such as high levels of volatility. He said, “Hedge funds are a poster child for any ill that befalls the economy.� The MFA boss also said that much has changed in the hedge fund industry since the collapse of the Connecticut based Long Term Capital Management in 1998.
According to Gaine, the Managed funds Association will strive to educate the Securities and Exchange Commission on hedge funds. The organization was instrumental in raising issues on the SEC imposed hedge fund laws, which significant members of the industry believe is burdensome. It is not clear how and if the departure of Chairman Donaldson will alter the course of the new hedge fund laws which fully go into effect early next year.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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