Common Sense Investment Management has not joined the ranks of the walking dead, quite yet.
However, the fund of hedge funds — which until August managed $3.2bn — has seen investors pull 90 per cent of assets since the firm’s founder was arrested in connection to a prostitution sting, according to CNBC. Read more
China Development Bank, the state-owned lender that owns part of the UK’s Barclays Bank, is set to launch China’s first private-equity fund of funds, highlighting the rapid development of the country’s domestic private equity industry, reports the FT. With direct approval from the State Council, China’s cabinet, the fund of funds is scheduled to raise a total of Rmb60bn ($9bn). Up to now, local and international buy-out firms have raised an estimated $50bn in total for private-equity investments in China, with about $15bn of that coming in the first three quarters of this year.
More than a third of investors in funds of hedge funds plan to cut out the industry in future and move towards direct investment in single-name hedge fund managers, according to the results of a new survey, the FT reports. The single biggest reason for moving out of funds of funds cited by the poll’s respondents – who included pension funds, asset managers, banks, family offices and endowments – was fees. Pensions & Investments says the 2008 financial crisis could well have proved the tipping point for fund of funds.