NEW YORK (HedgeWorld.com)–Institutional investors are indeed a force of change in the funds of hedge funds business, according to Riskdata.
The firm sells risk management software and analysis services to hedge funds and funds of hedge funds.
Riskdata officials said that assets under mangement among its clients grew by more than 60% over the last 12 months, and the firm estimates that about 85% of that growth came from inflows of institutional investor money, with the remainder coming from high-net-worth investors and performance gains.
Riskdata declined to name an exact number of firms that are clients.
One surprise that Riskdata found was that smaller funds of hedge funds are growing at a faster pace than their large-scale counterparts. A greater gain was distributed across all firms no matter the size when officials measured gains on both an equal-weighted basis and on an asset-weighted basis.