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
Every business concern should have neigh adequate capital to run the business operations it should have neither redundant nor excess working capital non inadequate or Shortage of

What is working capital? Working capital comprise of the current assets of the firm.

Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that

Explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of complete businesses.

What is the operating leverage effect and what causes it?  What are the potential benefits and negative consequences of high operating leverage? The phrase operating leverage e

Once capital markets are integrated, it is hard for a country to maintain a fixed exchange rate. Explain why this may be so. Answer: one time capital markets are integrated int

Q. Explain about Net Working Capital Concept? Net Working Capital Concept: - Net working capital demotes to the difference among current assets and current liabilities. Current

Compare and contrast mutual and stockholder-owned savings and loan associations. Some loan and savings associations are owned by stockholders, just as commercial banks and oth

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Day Traders Day traders are basically the market markers. They create liquidity in the market by frequently buying and selling stocks throughout the day in the hope that the pr