The Hedge Fund Industry in New York City Alternative Assets

The Facts The Hedge Fund Industry in New York City alternative assets. intelligent data.

The Hedge Fund Industry in New York City

New York City is home to over a third of all the assets in the hedge fund industry today. We provide a comprehensive overview of the hedge fund industry in New York City, including New York City-based investors’ plans for the next 12 months, the number of hedge fund launches each year, fund terms and conditions, the largest hedge fund managers and performance.

Fig. 1: Top 10 Leading Cities by Hedge Fund Assets under Fig. 2: Breakdown of New York City-Based Hedge Fund Management ($bn) (As at 31 December 2014) Investors by Type

Manager City Headquarters Assets under Management ($bn) Fund of Hedge Funds Manager New York City 1,024 Foundation 2% London 395 3%3% 6% Private Sector Pension Fund Boston 171 31% Westport 168 8% Family Office

Greenwich 164 Endowment Plan San Francisco 87 Wealth Manager Chicago 75 15% Hong Kong 61 Insurance Company 21% Dallas 52 11% Asset Manager Stockholm 39 Other Source: Preqin Hedge Fund Analyst

Source: Preqin Hedge Fund Investor Proﬁ les

Fig. 3: Breakdown of Strategies Sought by New York City- Fig. 4: Breakdown of Structures Sought by New York City- Based Hedge Fund Investors over the Next 12 Months Based Hedge Fund Investors over the Next 12 Months

60% 100% 97%

50% 90% 50% 80% 40% 70% 31% 30% 26% 60%

20% 19% 50% 13% 11% 40% 9% 9% 10% 7% 7% 30% Proportion of Fund Searches 0% 20% 17% Proportion of Fund Searches

10% 5%

Macro 1% Equity Credit 0% Diversified Neutral Long/Short Long/Short Commingled Managed Alternative Listed Fund Arbitrage Event Driven Fixed Income Fixed Opportunistic Equity Market Multi-Strategy Account Mutual Fund Relative Value

Source: Preqin Hedge Fund Investor Proﬁ les Source: Preqin Hedge Fund Investor Proﬁ les

Fig. 5: Mean Terms and Conditions: New York City-Based Hedge Funds vs. All Hedge Funds

Mean Management Mean Performance Median Redemption Median Redemption Mean Lock-Up Period Fee (%) Fee (%) Frequency (Days) Notice Period (Days) (Months) New York City-Based 1.59 19.65 90 45 10 Hedge Funds All Hedge 1.56 19.16 30 30 6 Funds

Source: Preqin Hedge Fund Analyst

The Facts The Hedge Fund Industry in New York City alternative assets. intelligent data.

Fig. 6: Breakdown of New York City-Based Hedge Fund Fig. 7: Breakdown of Core Strategies Offered by New York Launches by Year of Inception City-Based Hedge Funds

450 424 407 400 385 Equity Strategies 350 350 335 1% 310 7% 303 Event Driven Strategies 300 267 279 7% 250 222 Credit Strategies 200 200 185 10% 42% 142 144 Relative Value Strategies 150 119 96 100 91

No. of Fund Launches Multi-Strategy 50 15% 0 Macro Strategies

17% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Niche Strategies Pre-2000 2015 YTD 2015

Year of Inception Source: Preqin Hedge Fund Analyst Source: Preqin Hedge Fund Analyst

Fig. 8: Top Five New York City-Based Hedge Fund Managers Fig. 9: Performance of New York City-Based Hedge Funds by Assets under Management (As at 30 June 2015)

Year Assets under 12% Manager Established Management $46.8bn as at 10% 9.55% Och-Ziff Capital Management 1994 9.24% 9.07% 01 July 2015 8.37% 8% $31.1bn as at BlackRock Alternative Investors 2005 31 March 2015 6% $29.2bn as at Millennium Management 1989 4.69% 01 May 2015 Net Returns 4.33% 4% 3.72% 3.55% $27.1bn as at Renaissance Technologies 1982 31 March 2015 2% $26.0bn as at D.E. Shaw & Co. 1988 01 April 2015 0% Source: Preqin Hedge Fund Analyst 2015 YTD 12 Months 3-Year 5-Year Annualized Annualized New York City-Based Hedge Funds All Hedge Funds

Source: Preqin Hedge Fund Analyst

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