With hedge funds gathering plenty of attention in financial news the past couple of years, looking at 2018’s dismal number of closures and their slight revitalisation in 2019, we’ve decided to compile a short list of statistics to see how the state of the industry this year compares to the last worldwide.
Crypto hedge funds are on the up-and-up with increased regulatory support for the digital asset class, and there are certainly similarities between the jurisdictions of crypto and traditional funds. However, there are differences between the highest earners in the US and the UK and, looking into the role of women within the industry, there’s certainly a lot of room for change to bring more women to the C-suite in this sector.
4. The hedge fund industry achieved its best aggregate returns since the beginning of 2012 in the first quarter of 2019, where the year to date (YTD) average gains were +5.40%. - eVestment Click To Tweet
9. 59% of hedge fund firms pass regulatory compliance for their fund through their flagship product, whereas 14% pass on research costs, 28% on research-related travel and 27% on outsourcing their back office shadowing. - EY Click To Tweet
Distribution of funds and people
10. Crypto hedge funds tend to be domiciled in the same jurisdictions as their traditional counterparts. The top three for these fund entities are the Cayman Islands (55%), the United States (17%) and the British Virgin Islands (13%). - PwC Click To Tweet
17. At only 44 years of age, Chase Coleman III is the youngest on the US Rich List, co-founder of Tiger Global Management which invests in tech and manages around $30 billion in AUM. - Bloomberg Click To Tweet
20. Looking at positions in investor relations in hedge funds, women appear to hold an almost equal number to men (48%). However, 62% of junior staff jobs were held by woman and only 32% in senior staff roles. - Prequin Click To Tweet
Crypto hedge funds & ETFs
24. 52% of these funds use an independent custodian and only a quarter have independent directors on their boards. Most traditional funds have independent directors due to corporate governance issues - PwC Click To Tweet
26. However, considering most surveyed use Bitcoin as a benchmark, the beta coefficient was 0.82 to Bitcoin; the median fund’s return was linked to the asset’s price and these managers did manage to outperform their benchmark. - PwC Click To Tweet
27. Only 7% of crypto hedge funds use third party research and choose to conduct their own. In its early stages, it may be due to limited numbers of crypto research providers at this moment in time. - PwC Click To Tweet
29. The best performing Hedge Funds ETF in 2018 was the BTAL at 14.13%, and the most recently launched ETF in this space was the iM DBi Managed Futures Strategy ETF DBMF in 08/05/19. - ETF.com Click To Tweet
Given the rise in this new generation of hedge funds and the growing need for female representation in the industry, it’ll be interesting to see how these facts and figures change as we head into 2020 and beyond.
Have you found out any more exciting facts about the hedge fund industry? Let us know!
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