Hedge fund “families” growing larger every year
| Oct 21st, 2008 | Filed under: Academic Research, Hedge Fund Industry Trends, Today's Post | By: Alpha Male |
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It is often said that there are approximately 12,000 hedge funds in the world today (or at least there were until recently). But often overlooked is the fact that many of these funds are managed by the same hedge fund company. When most people think about a hedge fund, they implicitly think about the management company itself, not the legal organization of the assets managed by it. On this score, there are roughly 3,000-4,000 hedge fund companies (a.k.a. “families”) in the world.
According to a new paper by Nicole Boyson of Northeastern University, the proportion of hedge fund families with more than one fund has grown from less than a third in 1994 to over half by 2007. In addition, the number of hedge fund companies managing 10 or more funds has grown from only 10 in 1994 to 228 by 2007. The following chart was constructed from the data in Boyson’s paper:
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