January 24, 2007

Canada’s Hedge Fund Industry

-- Pushpa Sathish, Staff Writer

An NBCN Prime Brokerage Services study offers a comparison between the Canadian hedge fund industry and its counterparts across the world:

  • It’s pretty small – 30 percent have between $10 and $49 million (US) in assets under management. Only 4 percent have assets exceeding $5 billion. On the global scene, 21 percent manage assets higher than $5 billion, but only 10 percent have assets between $10 and $49 million.
  • It’s new – only 17 percent of Canadian funds have been around for 10 or more years. At least 33 percent of hedge funds across the world have been in existence for a decade or more.
  • As much as 25 percent of funding for Canadian funds comes from partners and employees, as compared to only 8 percent at the global level. A little more than 10 percent of global hedge fund assets come from banks and insurance companies.
  • Nearly 80 percent of Canadian managers plan to raise more capital in the next 12 months using futures/commodities strategies as compared to only 22 percent that favored these strategies on a global level. Nearly half the respondents were inclined to use synthetic structures like swaps, forwards and options. Long/short equity emerged as the largest strategy used by Canadian managers.
  • Canada’s hedge fund industry has grown 25 percent between 2005 and 2006, with assets under management rising by 40 percent in the same period to touch $25 billion.

So it follows that there’s ample scope for growth in the industry - because of strong regulations, a resource boom, and adequate returns. Not surprising, when 40 percent of Canadian hedge funds are active in Western Europe, 20 percent in Japan, 15 percent in the rest of Asia, and 15 percent in central Europe.

The survey covered 35 hedge fund managers in Canada, and compared their responses with those of 2,451 funds from all over the globe.

--
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Comments

Is this study available on-line?

Posted by: Rob Allen | Jan 25, 2007 9:39:02 AM

Rob, as far as I know, I don't think it is. You can contact James Niosi at NBCN Prime Brokerage for more information.

Posted by: Pushpa | Jan 27, 2007 2:47:17 AM

Can anyone guide me to information regarding firms manaing HFs or HFoFs in Vancouver? Thanks

Posted by: SRE | Jan 28, 2007 6:26:28 PM

SRE, check out http://www.hedge.ca/ for information on the Canadian hedge fund industry.

Posted by: Pushpa | Jan 28, 2007 10:21:45 PM

Hi
On wich web sites can I get an exhaustive list of all the north american
Hedge funds and investments funds (Calpers...) please?
Thank you
Regards

Montreal

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