March 1, 2006

Big Funds Continue Growing

NEW YORK (HedgeWorld.com)--In 2005, funds of hedge funds with more than US$1 billion under management gained more than US$72 billion in assets, according to a survey by London-based InvestHedge. This represented a growth rate of 12% for the year.

But the large fund of funds expansion in 2005 was significantly less than it had been in 2004, when a similar survey found an increase of US$166 billion.

Still, with continuing growth, these US$1 billion-plus firms now oversee combined assets of more than US$631 billion. That accounts for over half of total hedge fund money globally, which InvestHedge takes to be around US$1.3 trillion.

The number of $1 billion-plus fund of funds businesses also rose, from 119 to 134 in 2005, the study found. On these, 17 have more than $10 billion in assets.

The largest operations are owned by Swiss banks: UBS Global Asset Management, Union Bancaire Priv?e, and Julius Baer, which acquired GAM last year.

CKurdas@HedgeWorld.com

Contact Bob Keane with questions or comments at bkeane@investmentadvisor.com.

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