âInvestors and industry watchers will be interested to learn that the number of distinct hedge funds and funds of hedge funds we were able to identify in aggregated hedge fund databases in 2007, with duplicate funds removed, increased by 14.5% from the prior year,â said Meredith Jones, managing director of PerTrac.
âThe number of single manager hedge funds increased by 11%, while the number of funds of hedge funds increased by 21%,â Ms. Jones added. âThis increase in the number of reporting funds means that alternative investment industry participants are able to access more performance, strategy and fund information than ever before, which should translate into better investment decisions and more efficient capital raising efforts, not to mention improved transparency.â
The study, released annually since 2003, has become a widely-followed indicator of the size and composition of the hedge fund industry. The 2007 study was conducted using data from eleven major hedge fund databases, combined and analyzed with the PerTrac Analytical Platform, the leading investment analysis and asset allocation software application.
Key Findings of the 2007 PerTrac Hedge Fund Database Study
The 2007 PerTrac Hedge Fund Database Study found a total of over 54,000 investment records across all databases, including both single manager hedge funds and funds of hedge funds (FOFs). Records are the total number of funds and fund classes in all databases, including all duplicate records.
Within the overall collection of more than 54,000 records, the PerTrac Analytical Platform revealed approximately 22,650 âdistinctâ hedge funds and fund of funds among the various hedge fund databases, once duplicate records were removed. This figure counts individual classes within funds as distinct investments.
Other key findings include:
â¢ Approximately 21,000 distinct funds reported performance data in 2007.
â¢ Approximately 15,250 single manager hedge funds were identified, and approximately 7,400 FOFs were identified. This compares with 13,675 single manager hedge funds and 6,100 FOFs identified in the 2006 study.
â¢ Just over 4,600 distinct fund management companies (e.g., general partners) were counted. Related fund management companies (subsidiaries, etc.), where identifiable as such, were counted as a single fund company.
â¢ Of the 15,250 single manager hedge funds, approximately 13,900 reported performance in 2007. Of those, approximately 34% were onshore (U.S. domiciled) funds and 66% were offshore (non-U.S. domiciled).
â¢ About 35% of identified single manager funds were domiciled onshore (in the U.S.) while about 65% were domiciled offshore. Among FOFs, approximately 13% were domiciled onshore while 87% were offshore.