Eurekahedge - Other Products and Services
Fund Of Private Equity Fund Database Free Trial

Hedge Fund News

EH Report

Manager Interviews

‘Mizuho-Eurekahedge Index’ goes live

Asian Hedge Fund Awards

Industry Events Calendar

Fund Launches and Closures


Eurekahedge Hedge Fund Indices

Hedge Fund Monthly
2009 Key Trends in Fund of Hedge Funds


December 2009


2009 has been a year of mixed fortunes for funds of hedge funds, witnessing record redemptions through most of the year while at the same time, posting one of the best performances year-to-date. The Eurekahedge Fund of Funds Index has gained 9.17% November YTD and is on track to have the best year since 2003. In terms of asset flows, however, 2009 has been the worst year on record, witnessing net redemptions of US$164 billion November YTD.

The fund of hedge funds industry currently comprises 3,110 funds, almost 15% down from end-2007 which collectively manage US$440 billion. The assets under management figure has decreased by almost 50% from its maximum of US$823 billion in May 2008, primarily driven by the widespread redemptions. The notable difference between the decline in the number of funds and assets in 2008 and 2009 is attributed to most of the industry’s assets being eroded by performance losses and redemption requests rather than only widespread closures.

Although funds of funds started the year with two straight months of outperformance over single-manager hedge funds, multi-managers have not been able to match the strong gains made by underlying managers since then. Hedge funds have, on average, gained 18.34% November YTD as opposed to 9.17% for funds of funds. Furthermore, multi-managers also largely underperformed the single-managers in 2008 – the Eurekahedge Hedge Fund Index shed 11.6% during the year while the Eurekahedge Fund of Funds Index lost 19.6%. On average, funds of funds have only managed to outperform hedge funds in 18% of the months since 2000.

Figure 1 shows the growth in the number of funds of funds and the assets under management since 2000.

Figure 1: Industry Growth over the Years

Click on the image for an enlarged preview

This report is broadly divided into two parts – covering asset flows and performance review. The section on asset flows will look at the fund of funds industry in terms of manager locations, geographic mandates...

The full article is available in the EH Report accessible to paying subscribers only.

Subscribers may continue to login as usual to download the full report and non-subscribers may email to enquire on how to obtain the full research report.



If you have any comments about or contributions to make to this newsletter, please email


Industry News
  The Eurekahedge Report - October 2014  
  Asset Flows Update for the Month of September 2014  
  Hedge Fund Performance Commentary for the Month of September 2014  
  2014 Key Trends in North American Hedge Funds  
  2014 Overview: Key Trends in Funds of Hedge Funds  
  The Billion Dollar Interview with Constellation Asset Management  
  CSRC New Regulations on Private Investment Funds  
  It's All There: Post-AIFMD Fundraising Options in Germany  
  Singapore: Opportunities for Islamic Finance  
  The New Deal: Hedge Fund Management Fees Are Subject to Social Security Taxes  
Eurekahedge Hedge Fund Manager Travel Plans

Copyright © 2014 Eurekahedge Pte Ltd.
Use of this site is subject to our terms and conditions of use.