Close Close

Portfolio > Mutual Funds > Equity Funds

Funds Added to Database Indicate Patterns across S

Your article was successfully shared with the contacts you provided.

RYE, N.Y. (–The almost 600 funds that recently were added to the Tremont/TASS* database show a strategy breakdown in line with the industry at large. But there are some interesting differences among styles.

Single-manager funds dominate the new additions, both in numbers and in asset size. There are 374 single-manager vehicles in the group, collectively representing about US$40 billion in assets, compared to 225 funds of funds with US$20 billion in assets.

Not surprisingly, long/short equity is the largest component with 155 new funds, as was the case prior to the enlargement of the database. In terms of number of funds, this strategy makes up 41% of the single-manager group. But these long/short funds manage only 23% of the total assets in this data set, said Stephen Jupp of Tremont.

By contrast, fixed-income arbitrage managers account for only 8% of the single-manager funds added to Tremont/TASS, with 31 vehicles, but they manage 14% of the assets. The reason is the larger average size of fixed-income funds compared to equity funds, says Mr. Jupp.

Other Strategies

Managers that describe themselves as multi-strategy also are larger in asset size, on average. Multi-strategy managers account for a little more than 3% of the number of funds in the new set but have almost 6% of the assets.

Event-driven managers are the second largest group in numbers after long/short equity, with 65 funds. The new data also covers 37 equity market neutral funds, 26 convertible arbitrage funds, 24 managed futures pools, 13 global macro vehicles, six emerging markets funds and five short sellers.

Tremont tracked most of these funds previously in an internal database. Investors who heard about the private data have been asking for expanded coverage for outside subscribers, said Mr. Jupp. Many of the funds are of fairly recent origin, having been launched in the past couple of years.

Some of these new single-manager funds also may be added to the Tremont/TASS hedge fund index, but that requires them to go through a separate selection process and sign an agreement.

Other hedge fund databases and indexes have also been expanding. For instance the MSCI investable index, a different type of product based on a different strategy classification system, recently added 10 new funds, bringing its total to 74. The largest group in this index falls into a style category described as “no bias.”

[email protected]