As the yield on the the 10-Year Treasury climbs above 4% for the first time this year, we couldn't help but notice how the path of long-term interest rates bears a striking similarity to last year. The one major difference seems to be that this time less people are talking about it. Last year, there was near hysteria when long term interest rates rose to their highs of the year and above 5%. This year, rates are once again at their highs of the year (although 100 bps lower), but this time around its not nearly as big a story...yet.
The largest hedge funds in the world account for 75% of hedge fund industry assets, compared with 69% the previous year, continuing the trend of larger funds eclipsing smaller players.
The largest 100 hedge funds have $1.3 trillion (€856.4bn) in assets under management, a 35% increase over 2007, according to Alpha magazine’s Hedge Fund 100 report.
There were some dramatic shifts in the rankings over the previous year.
Paulson & Co rocketed to number eight in the list from 69 last year, with nearly $29bn in assets under management. The fund was boosted by its positions against the sub-prime mortgage market.
Harbert Management, a hedge fund with investments across real estate, private equity, convertible arbitrage and distressed debt and special situations. Its assets have increased from $1.5bn in 2002 to nearly $23bn as of March 1, according to its Web site. Its ranking rose sharply to 16 from 94 last year.
The asset growth reflects the growing number of institutional investors, particularly pension funds making allocations to hedge funds, either directly or through funds of hedge funds.
Separately, hedge fund industry assets declined 1.4% to $2.8 trillion in the first three months of the year, according to a report by hedge fund news service HedgeFundNet.
The decline followed substantial redemptions in the first quarter, following poor performance across the industry.
HedgeFundNet's estimate of total industry assets is relatively high compared with other assessments, which vary from from $1 trillion to $2 trillion.