“As we look across the fund universe, one clear area of growth has been in the number of single-manager hedge funds, and we see that momentum continuing in the future,” Lisa Corvese, Managing Director at PerTrac said. “Overall, the study demonstrates a rebound — with the industry as a whole getting closer to prior peaks.”
1,184 new funds were launched, representing a 34% increase over the prior year. Total AUM for single-manager hedge funds and fund of funds was $2.1 trillion in 2010.
Fund of funds continue to see AUM decline. The 3,196 fund of funds in the study – approximately the same number as in 2008 – had $518 billion under management in 2010. This represents a 10.5% decrease from 2009 and a steep 31% decline from 2008 when $750 billion was reported.
Commodity Trading Advisors (CTAs), the third category measured in the study, attracted investors in 2009 as a haven from stocks and bonds as their numbers peaked that year at 2,425. In 2010, the number of CTAs dropped to 1,997 which is approximately the same level as in 2008.