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Note: The fund of funds industry, down 38.9% from its $1 trillion peak, shrinks 13.4% in the first half.
By Niki Natarajan
Blame it on Bernie Madoff. Union Bancaire Privee's losses from the Madoff scandal pushed the Swiss fund of funds from its top spot on the InvestHedge Billion Dollar Club a year ago to fourth place at midyear. UBP still has $23.83 billion, having lost $18.95 billion in the first half, its 44.29% slide in assets representative of the industry's much-diminished affluence.
The collapse of Madoff's Ponzi scheme, together with Lehman Brothers' bankruptcy, has injured not only UBP but the entire funds of funds industry, which has been sinking for 18 months. The InvestHedge six-month survey of the largest funds of fundsthose with $1 billion or more in assets under managementfound 117 firms managing $613.17 billion at the end of June, a decline of 13.4% for the six month-period. The decline has slowed, however, since assets have decreased 38.9% from their $1 trillion peak at the end of 2007. Another $21 billion was lost from 48 firms, which now have less than $1 billion and are out of the ranking altogether.
UBS Global Asset Management A&Q managed to hold onto the lead despite losing 9.77%, or $3.4 billion, during the first six months. UBS Global Asset Management now has $31.43 billion ($33.33 billion if you include UBS Wealth Management Assets USA).
For the first time since the rankings began, the Man Group has merged its three funds of funds entitiesRMF Investments, Glenwood Capital Investments and Man Global Strategiesto...