Large hedge fund managers control lion's share of assets — PerTrac

Large single-manager hedge funds continue to control the majority of global industry assets, according to PerTrac's ninth annual analysis of data from 11 major hedge fund databases.

At the end of 2011, single-manager hedge funds with at least $1 billion under management accounted for just 3.9% of the 10,007 active funds, but controlled 60% of the aggregate $1.726 trillion invested in single-manager funds. The $1.08 trillion managed collectively by the largest funds increased 1.4% in the year ended Dec. 31, according to the hedge fund software specialist in a study released Monday.

“Investors continue to view larger hedge funds as a better, safer bet,” said Jed Alpert, PerTrac's managing director of global marketing, in a news release.

Overall, the number of single-manager hedge funds increased by 6.98% in 2011, while the number of hedge funds of funds declined 4.8% to 3,388.

The modest decline in the number of hedge funds of funds came from those managing $1 billion or less; PerTrac's research found that the number of hedge funds of funds managing more than $1 billion increased 18% during the year. Hedge funds of funds managing at least $1 billion accounted for just 3.6% of all hedge funds of funds.

Growth of the aggregate assets managed by hedge funds of funds in 2011 was essentially flat at 0.23%, ending the year at $447 billion.

The full report is available PerTrac's website.