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| Friday, November 20, 2009 |
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ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
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October 20, 2008 4:17 PM ET
The hedge fund industry suffered a quarterly decline of assets of $210 billion during the third quarter—its largest quarterly decline ever—as the current financial crisis caused performance losses and record investor redemptions. Hedge Fund Research said investors withdrew over $31 billion from hedge funds, the largest capital redemptions the industry has ever seen. In fact, those redemptions entirely offset the industry’s capital inflows for the first half of 2008, resulting in a net decline of $2.5 billion for the year. “Since peaking last October, the industry has lost 11.5%,” said Hedge Fund Research president Kenneth Heinz. “With losses continuing through October, it appears that 2008 will be the worst year on record for both hedge fund performance and industry asset flows.” HFR said that at the end of the third quarter, total industry capital equaled $1.72 trillion, down from $1.93 trillion. The $210 billion decline in assets is larger than the entire amount of investor capital inflows for 2007, which was a record $194 billion. Most of the damage was inflicted in the third quarter, when industry assets declined 8.8%, including a loss of 5.5% in September alone—the second worst single-month performance on record—when markets were most volatile as several financial institutions failed. Over the first three quarters of 2008, industry assets have fallen by more than 10%, with the potential for more losses and a continuation of the trend toward consolidation in the fourth quarter. Mr. Heinz said the industry is in a consolidation phase that dates back to August of last year, with the most significant indicators showing themselves this year. “You’re seeing fewer fund launches, more fund liquidations and slower growth in the industry,” Mr. Heinz said, noting that in the second half, he expects to see more than the 355 fund liquidations that were recorded in the first half of this year. He also projected fewer fund launches over the second half of 2008. “The trajectory has changed from what the industry had been doing over the previous four or five years,” he said.
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