Small hedge funds score
01/05/2008
Small hedge funds have a turnover rate that is much higher than large hedge funds, according to a study by HedgeFund.net (HFN).
Funds with less than $15m in assets under management account for 21.6% of the HFN database.
This group accounted for 46.9% of the turnover. They are defined as funds removed from the database due to liquidations, failure to report performance or by request of the manager.
Hedge funds with assets of $250m or more account for 30.2% of the database. This group accounted for the smallest percentage of turnover, 9.8%.
The study measured funds leaving the database as of April 15, 2008 and compared it to the same period one year earlier.
Funds focusing on structured credit securities account for 0.6% of the database . They accounted for 4.1% of the fund removals during the period.
This is in line with the problems in the credit markets and the relatively poor performance these funds have produced since last summer. In the last six months ending March 2008, the average structured credit focused fund is down 4.29%.
