The latest (March 2014) Hedge Fund Survey has been released by the FCA.
The twice-yearly survey is based upon voluntary participation by the hedge fund industry – the current version benefitted from the input of 49 firms (out of a population of approximately 450 authorised hedge fund managers) and 106 funds; all data was as at the end of September 2013).
Some interesting, although not necessarily surprising, statistics:
- FuM in the UK accounts for around 19% of the total global hedge fund AuM.
- Cayman Islands remains the largest fund domicile (67%) followed by the US and Ireland with 10% each.
- Ownership by institutional investors e.g. pension funds has increased and now account for around 42% of total investors.
- In contrast, funds of hedge funds have fallen to 21% as medium and large size pension funds choose to manage their own portfolios.
- Median leverage has remained stable since the last survey with nearly 55% of sampled funds having gross leverage of less than 5x.
Given the enhanced reporting requirements under the AIFMD, the traditional Hedge Fund Survey, based as it is on voluntary participation, will eventually fade away, although the FCA envisages at least two more versions based upon data reported as at March and September this year.