Momentum in Asset Growth is Vital to Successfully Raising Hedge Fund Assets (Agecroft Partners)

January 2014

KEYWORDS: assets under management, growth, Liquidity, hedge fund investor

Authors:

Agecroft Partners

Organizations:
  • Agecroft Partners

Summary:

Many small to mid-sized hedge funds become frustrated because their firm’s assets under management are not growing and they believe the market is biased against them based on their asset size. They are constantly hearing that a majority of assets are flowing to the largest hedge funds despite evidence that shows smaller hedge funds have significantly out performed larger funds over time. Frequently they hear that once they get to a certain asset size, it will be much easier to raise assets. However, that is not necessarily true. Agecroft Partners believes that momentum in asset growth is more important to being successful in raising hedge fund assets for small and medium sized hedge funds than the current asset size of the organization.

Related Research and Data