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2012 Global Hedge Fund To Accelerate Recovery

2012/3/14 10:48:00 8

The international hedge fund industry has been recovering rapidly after the impact of the financial crisis.

Though in

European debt crisis

The global macroeconomic situation is unclear at the time of the uncertain economic recovery in the US, but statistics on Hedge Fund Research (Inc., HFR) show that in 2011, a total of 1113 hedge funds were newly established, of which only 270 in the fourth quarter of last year, the fund has been established for the most part in 2007 since 2007.

Macro strategy the rise of hedge funds

In 2007, before the outbreak of the global financial crisis, a total of 1197 new funds were set up.

By the end of 2011, the number of funds in the global hedge market rose to 9523, and the capital scale increased by 3% to $2 trillion and 20 billion.

Different hedging

fund

The investment strategy and risk return structure are quite different. There are usually more than ten kinds of investment strategies according to large categories. However, the relevant data show that the newly established fund in 2011 is more concentrated, with 479 stocks concentrated in stock hedging and 265 focusing on global macro strategy.

Among them, the stock hedging strategy is the largest increase in new funds since 2006, and the macro strategy is the largest number of funds since 1996.

However, judging from the number of failures, a total of 293 stock hedge strategy funds collapsed in 2011, the same year since 2008. The number of FOF failures has dropped to the level before the financial crisis. A total of 215 portfolio funds have been closed down.

Tighter regulation and narrowing of performance gap

"Investors still have confidence in hedge funds.

fund manager

The scope and width of the available trading strategy are extended. "

Kenneth J. Heinz, President of HFR, said: "despite the view that the new regulatory policy will affect the establishment of the new fund, more hedge funds will be established not only because of the increased risk tolerance of investors, but also because of these trading activities and the regulatory changes in the financial structure risk." (Kenneth Herz J. Heinz)

Hedge fund markets will continue to expand and innovate to provide more complex and pparent strategies to meet institutional investor requirements.

In July 2010, President Obama signed the Dodd Frank Wall Street reform and Consumer Protection Act, which was voted by the house of Representatives. It clearly stipulates that hedge funds with assets of more than $150 million need to be registered and supervised by the securities and Exchange Commission (SEC).

In addition, we have instructed the implementation rules to improve the registration and supervision system of hedge funds.

In terms of annual performance, HFR statistics show that in 2011, the worst performing hedge fund of 10% fell by 30.7%, while the best performing 10% hedge fund rose by only 19.5%, resulting in the best and worst 10% of the fund's performance gap only slightly more than 50%.

This is significantly lower than the performance gap of over 100% in 2010 and 58% in 2008, and the number of brilliant funds is also decreasing.

As a result, the fixed management fees and the first few quarters were basically flat at 1.57%, but with the flat income, the average incentive efficiency or floating management fees continued to fall.