Managers see danger in rise of mega funds
Institutionalisation of hedge funds could be adding to liquidity risk, managers say
The rise of “mega funds” – as institutional investors plough money into already well-established hedge funds – could be adding to liquidity risk, managers have warned.
Institutional allocations have fuelled the growth of the largest hedge funds in recent years. The three biggest firms – AQR Capital Management, Bridgewater Associates and Man Group – control nearly $450 billion in combined assets, which accounts for almost 15% of the estimated $3 trillion in total industry assets.
But the size
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