Hedge fund-of-funds managers may see a 0.89% rise in assets for the first six months of 2011, to an estimated $910 billion, following two years of asset declines, according to new analysis from researcher Preqin.
Also, hedge fund-of-funds managers could be managing around $950 billion worldwide by the end of 2011, based on the current pace of net inflows, Preqin researchers predict.
Assets managed in hedge funds of funds peaked at $1.251 trillion at the end of 2008, dropped 24.3% to $948 billion at the end of 2009, and fell 4.9% in 2010 to $902 billion.
Total hedge fund-of-funds industry assets dropped 27.9%, or $349 billion, in the two years ended Dec. 31, Preqin researchers discovered.
However, based on current net inflows, Preqin estimates that net inflows in the first six months of this year will total $8 billion and bring industry assets up to $910 billion as of June 30, according to the firm’s April hedge fund-of-funds report.