Shopping Cart -

Your cart is currently empty.
Continue Shopping
This website use cookies and similar technologies to improve the site and to provide customised content and advertising. By using this site, you agree to this use. To learn more, including how to change your cookie settings, please view our Cookie Policy
Pocketmags Digital Magazines
GB
Pocketmags Digital Magazines
   You are currently viewing the United Kingdom version of the site.
Would you like to switch to your local site?
Digital Subscriptions > The Hedge Fund Journal > Issue 138 – Jan 2019 > Making it Big: Hedge Fund Manager Survey 2018

Making it Big: Hedge Fund Manager Survey 2018

Charting the evolution of the billion-dollar hedge fund

GPP + AIMA + EDGEFOLIO

Part one of a two-part extract. Part two will appear in Issue 139 of The Hedge Fund Journal

Introduction

A start-up’s journey in any industry is not easy: it involves facing a series of challenges and hurdles. Those hurdles must be recognised, understood and then overcome.

As a measure of the industry, just under five hundred hedge funds manage approximately $2.8tn in assets1. They contain only a little more than 10% of the industry in terms of number of firms but manage close to 90% of its assets. Much attention focuses on this club and firms close to attaining this status.

But what about the rest of the industry? Those estimated 3,000 firms, that run no more than $1billion in AUM2, account for approximately $400bn AUM. In our paper, Alive & Kicking, published last year, we examined the universe of emerging managers (which we define as having AUM of up to $500m). Expanding on this work, this year’s paper looks at those firms that run no more than $1bn AUM and those that have made it into the billion-dollar club.

Through six key takeaways, this paper provides a road-map for all emerging and start-up managers seeking to build their firm to a billion-dollar business. In drawing on these takeaways, we sought feedback from both investors and managers alike.

Ultimately, what’s good for emerging managers also benefits the entire hedge fund industry. Investors value having the best choice possible; incumbent firms benefit from having their preconceptions challenged. We hope that this paper is of use to both emerging managers who are in the process of growing their firms, but also of use to those who are considering launching a hedge fund.

Tom Kehoe CAIA, Global Head of Research, AIMA

Sean Capstick, Head of Prime Brokerage, GPP.

Methodology

In conducting this survey, we reached out to all sizes of hedge fund managers to chart the evolution of a billion-dollar hedge fund manager − from just starting up to having ‘made it big’.

We also surveyed various allocators to help us understand their expectations of a growing fund. We wanted to find out what influences an allocators decision when they are deciding whether or not to invest.

01. Hedge fund manager survey3 with input from 155 hedge fund managers globally accounting for approximately $400bn AUM.

02. Input from global allocators, who in aggregate amount to $1 trillion, and allocate roughly $90bn to hedge funds.

03. Input from a series of manager roundtables. We spoke to a representative group of emerging managers (managers below $500m AUM) and larger more established managers (managers in excess of $1bn AUM).

Executive summary

‘Making it Big’ provides insights from larger managers who have blazed a trail in building a billion-dollar hedge fund business. The research examines their path to growth, providing a road map for all emerging and start-up managers as they make their way to $1bn AUM.

The work is informed by asset managers and industry allocators representing an estimated $500bn in total hedge fund AUM. Over 70% of manager respondents surveyed fall into the big six categories of investment strategies: equity long/short, global macro, fixed income credit, CTA/managed futures, event driven and multi-strategy.

READ MORE
Purchase options below
Find the complete article and many more in this issue of The Hedge Fund Journal - Issue 138 – Jan 2019
If you own the issue, Login to read the full article now.
Single Issue - Issue 138 – Jan 2019
£119.99
Or 11999 points
6 Month Digital Subscription
Only £ 120.00 per issue
£599.99
Or 59999 points

View Issues

About The Hedge Fund Journal

Informing the Hedge Fund Community. With access to some of the industry’s biggest names and an astute and talented group of writers and contributors, The Hedge Fund Journal has established itself as a trusted source of information on the hedge fund industry.