Current scenario of hedge fund industry, Financial Management

Global Scenario

The Hedge Fund industry has captured over US $ 2 trillion in assets globally by the end of year 2006. According to an investor survey revealed for the Hedge Funds, the US remains the favored destination for investment and accounts for 62 percent of the total Hedge Fund assets, followed by Europe (26%), Asia Pacific (10%), and others (2%)[6]. The great demand for the alternative investment has favored Hedge Funds most specifically among institutional investors because they fit in their alternative investment prospects and generate high returns. Interestingly, most Hedge Fund investments come through fund of Hedge Funds, which account nearly about 50 percent of the total funds. These funds give access to retail investors for large and closed funds with quick liquidity. The number of Hedge Funds has grown exponentially with estimates made that over 8400 Hedge Funds and more than 2100 Fund of Hedge Funds are actively managing assets of investors worldwide. According to the Hedge Fund Intelligence first global review, there are more than 350 Hedge Funds managers who manage around $1 billion.

The fabulous growth of the emerging markets is attracting the Hedge funds. Emerging markets Hedge Fund sector provides investors who have entered the industry for the benefits of diversification, large economic growth prospects and developed financial system. Asian Hedge Funds account for 10 percent (2 percent in 2000) which of the total world assets in Hedge Funds have shown a growth rate of 50 percent per annum in the last five years.

Moreover, the Hedge Fund managers are having substantial interests in the recent buyout deals and are threatening to give competition to private equity funds.

Dow Jones Newswire reports that Hedge Funds increasingly desire to leave their stakes in companies that have gone private rather than liquidate investment to make short-term returns. They remain invested to boost returns with longer-term prospectus.

 

Posted Date: 9/11/2012 2:25:43 AM | Location : United States







Related Discussions:- Current scenario of hedge fund industry, Assignment Help, Ask Question on Current scenario of hedge fund industry, Get Answer, Expert's Help, Current scenario of hedge fund industry Discussions

Write discussion on Current scenario of hedge fund industry
Your posts are moderated
Related Questions
Name two patterns of cash flows for a share of common stock. How does the market determine the value of the most common cash flow pattern for common stock? Cash flows for a sha

Q. Show Social and Regulatory Factors? Regulatory climate and legislation against the environmental degradation may impair the profitability of the industry. Price control, vol

Cash flow statement: The cash flow statement summarises the flow of cash into and out of the business over a certain period of time. The cash flow statement measures the liq

Employees' Provident Fund (EPF) The Employees' Provident Fund (EPF) Act, 1952 is the earliest legislation related to old age income security in India. It is a contributory prov

When an investor purchases non-callable or non-putable convertible bonds, he would be buying a non-callable/non-putable straight security and also buying a call o

What was the Second ground of criticism of traditional treatment Second ground of criticism of the traditional treatment was that focus was on financing problems of corporate e

Determine the Management buy-outs Management buy-outs (MBOs) The management of company buy out the shareholders. Management will usually require financial backers (ventu

TC  Shipping Ltd has decided to purchase a machine to augment the company's installed capacity to meet the growing demand for its products. There are three machines under considera

Calendar Studies These attempted to predict rates of return during a calendar year and examine if there is any particular observable pattern in the rates of return on the stock

Q. Describe Factors to Analyze a Company position? - Venture capitalists may be involved in the business because of its significant growth but poorly structured finance. An equ