Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Big hedge funds’ share of industry hits 8-yr high, says Bank of America

admin by admin
September 24, 2024
in Stock
0
Big hedge funds’ share of industry hits 8-yr high, says Bank of America
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

By Nell Mackenzie

LONDON (Reuters) – The largest players now make up about three-quarters of the hedge fund industry, as the likes of multi-strategy firms have taken up the lion’s share of the business, said a Bank of America report seen by Reuters on Tuesday.

Hedge funds that manage more than $5 billion in assets grew their industry share to 73% by the end of the second quarter of 2024, up from 65% in 2018, according to the report, which was sent to clients on Monday.

This came at the expense of mid-sized firms between

$1 billion and $5 billion in size, which saw their proportion of industry money shrink 6% in the same time frame.

Multi-strategy firms seem to be a “major driver,” said the report which was the result of a survey of 160 hedge fund investors managing roughly $680 billion that include pensions, family offices, sovereign wealth and funds of hedge funds.

Almost half of those surveyed said they planned to both increase the money they allocate to hedge funds and the number of hedge funds in their portfolios.

But the roughly 6% that plan to take money out of the sector mostly said they would choose a different kind of investment class like private equity, or private credit.

The bigger the investor, the stickier their leaving plans, either fully or partially, the survey showed.

Two-fifths of those surveyed agreed with their hedge funds that performance would have to surpass a certain threshold – or hurdle rate – before the application of fees.

These thresholds, known as “hurdle rates”, included the risk-free rate, an agreed price or used equity indices as a benchmark, said the report.

Top investor concerns included hedge funds crowding into the same trades, not holding enough downside protections and geopolitical risks, the survey said.

This post appeared first on investing.com

Previous Post

Fed’s Bowman to speak, Boeing’s new pay offer – what’s moving markets

Next Post

CrowdStrike exec to apologize for faulty update that caused global IT outage

admin

admin

Next Post
CrowdStrike exec to apologize for faulty update that caused global IT outage

CrowdStrike exec to apologize for faulty update that caused global IT outage

Trending News

Finance firms more worried about global economy, BoE survey finds

Finance firms more worried about global economy, BoE survey finds

October 2, 2024
Mitsubishi takes $342M hit as Japan’s offshore wind plans falter

Mitsubishi takes $342M hit as Japan’s offshore wind plans falter

February 6, 2025
Futures higher, Exxon Mobil flags hit to Q4 earnings – what’s moving markets

Futures higher, Exxon Mobil flags hit to Q4 earnings – what’s moving markets

January 8, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.