The Incredible Shrinking Hedge Fund Industry

While total global alternative assets continue to increase, hedge funds have seen their assets drop. The new Willis Towers Watson 2017 Alternative Survey shows that institutions are pulling assets out of hedge funds. Private Credit continues to be a favored asset class, despite very tight credit spreads. The 100 largest alternative asset managers saw strong AUM growth of 10% in 2016.

This is a significant shift in asset allocation:

In terms of the growth by asset classes among the top 100 asset managers, illiquid credit saw the largest percentage increase over the 12-month period, with AuM rising from $178bn to $360bn. Conversely, assets allocated to direct hedge fund strategies among the top 100 asset managers fell over the period, from $755bn to $675bn.

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The Incredible Shrinking Hedge Fund Industry

Institutional Investor article:

The Incredible Shrinking Hedge Fund Industry