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Market Moves

US Hedge Fund Assets Reach $2.58 Trillion

Growth of holdings climbed 8% last year, Preqin data indicate.

By Larry Light

US hedge fund assets grew almost 8% last year, to $2.57 trillion, and inched up to $2.58 trillion in this year’s first quarter, Preqin researchers said.

The increase last year came amid very strong performance for hedge funds, as almost all markets—and equities in particular—enjoyed strong returns. The first quarter of 2018, when assets moved up just 0.4%, proved more challenging, as the US stock market had a 10% correction during the winter.

Nonetheless, Preqin has an optimistic view for this year as a whole. “Indications for 2018 are for sustained growth despite lackluster performance,” the firm said in a statement.

Public pension funds remain the biggest investors in hedge funds, with $302 billion allocated, Preqin said. This total has continued to increase, despite redemptions from other types of investors. Sovereign wealth funds, insurers, and asset managers have seen their assets in hedge funds drop.

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The US has 62% of its institutions investing in hedge funds actively. And 72% of global hedge assets, or $2.63 trillion, are with American hedge operators. “With so much of the industry located in the US, the development of the industry here is likely to dictate growth across the globe,” said Amy Bensted, Preqin’s head of hedge funds.

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Home > News > Corporate Moves > Malaysia’s Khazanah Enlists Retirement Fund CEO
Corporate Moves

Malaysia’s Khazanah Enlists Retirement Fund CEO

Shahril Ridza Ridzuan will become the sovereign wealth fund’s new managing director on August 20.

By Chris Butera

The CEO of Malaysia’s $193 billion Employees Provident Fund, which handles retirement savings for private-sector citizens, is now the managing director of the country’s sovereign wealth fund.

Shahril Ridza Ridzuan will start his new role heading the wealth fund, the RM157.2 billion ($38.5 billion) Khazanah Nasional, on August 20. The shift follows a change of leadership for the nation, as new Prime Minister Mahathir Mohamad was a critic of the wealth fund.

Khazanah also named Mahathir as its chairman, and added four other directors, which includes Economic Affairs Minister Mohamed Azman Ali.

These moves come after Azman Mokhtar, the fund’s former managing director, and its entire nine-member board offered their resignations last month—the firm’s largest shake-up since Malaysia’s new government took control in May.

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Mahathir constantly criticized the sovereign wealth fund’s objective focus as well as the “overpayment” of its executives, the Straits Times reports. Mahathir was the fund’s first chairman in 1994. The news publication credits him as Khazanah’s creator.

It is not known if every resignation letter has been accepted, nor if any members will keep their positions.

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