Hedge Fund Assets Under Management Continue To March Higher

January 13, 2017

As the investment community continues to debate the role of hedge funds in the future, one thing is for certain, assets continue to flow into this much debated space.

The above chart goes back ten years to show the overall growth of assets in hedge funds. As it would be expected, 2008 saw overall assets under management decline following a difficult market environment. Since that timeframe assets have steadily increased year over year, despite high fees and at times disappointing performance. 2016 was no different with a difficult first half as overall returns underperformed the broader market indices, assets still flowed into this space. Hedge funds will still be a sought after asset class for institutional investors as they provide diversification, bond-like volatility, and low correlation to traditional long-only assets. To remain competitive, hedge funds will have to cut management and performance fees to remain attractive to the largest capital allocators.

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

02.11.2025

Egg Prices Ruffle Consumer Feathers

While investors scrutinize rhetoric from the Trump administration for its potential to ignite another bout of inflation for U.S. consumers,…

02.04.2025

Assessing the Trade War “Battlefield”

The tariff plans announced by President Trump in recent days represent a significant escalation in trade policy and a shift…

01.28.2025

Alternatives to Drive Growth in the Next Real Estate Cycle

As the real estate market evolves, alternative sectors are expected to drive significant growth in the coming years. Senior housing,…

01.22.2025

The Economic Toll of the California Wildfires

Earlier this month, wildfires broke out across Los Angeles County, California, destroying more than 12,000 homes, businesses, schools, and other…

01.13.2025

A Cup of Joe Could Break the Bank

Over the last few years, a cup of coffee has become much more expensive as the costs of the two…

01.06.2025

Deficit Dangers

Large-scale government programs aimed at stabilizing the nation’s economy in the wake of the pandemic, higher interest costs, and an…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >