GLOBAL - Fund of hedge funds have seen assets under management grow by a staggering 60% over the last 12 months, a new report by Riskdata claims.
Riskdata said its fund of hedge funds client base across Europe, the UK and North America, has increased from a base of 100 in June 2004 to 156 on an assets under management-weighted basis last month.
In addition, the company, which offers interactive access to any risk analysis for money managers, said it also saw an increase to 162 on an equal-weighted basis.
The bulk of the growth in their assets, recorded at 85%, comes from inflows of institutional investor money, with the rest made up of high net worth inflows and performance gain over the period.
Olivier Le Marois, CEO of Riskdata, said the team was “proud of serving” the fund of hedge fund community.
Le Marois added: “Crucially, we think that this growth is anchored on the fact that they are all using quantitative risk management both to support their investment process, and to offer risk transparency to the investors.
“This demonstrates that the flow of institutional money into alternative investment has no reason to slow down, as long as we address their demand for risk transparency.”
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