Seward & Kissel’s Established Manager Hedge Fund Study

June 20, 2023

We are excited to introduce the Seward & Kissel Established Manager Hedge Fund Study. In this Study, we evaluate the new hedge funds and classes launched by existing investment managers that have been in business for more than five years and are currently managing more than $1 billion in regulatory assets under management.

Our key findings are as follows:

  • Established-manager funds employing bespoke strategies, which were more short-term and income-focused in nature, offered shorter withdrawal terms and fewer liquidity restrictions. Among such funds, 75% offered monthly liquidity.
  • Founders classes were not used by any funds using traditional strategies, and only one-third of funds using bespoke strategies. By contrast, more than half of the funds analyzed in our Seward & Kissel New Manager Hedge Fund Study (59% of equity funds and 53% of non-equity funds) employed founders classes.
  • Among funds pursuing traditional strategies, long/short funds represented 40%, macro funds represented 40%, and equity/debt strategies accounted for 20%.
  • Slightly more than half of the funds studied were standalone U.S. funds with no offshore equivalent.

This first edition of the Seward & Kissel Established Manager Hedge Fund Study is a companion to the long-running and industry-leading Seward & Kissel New Manager Hedge Fund Study, an annual analysis of hedge funds launched by new managers. Seward & Kissel has produced that widely read study since 2011. The firm’s full suite of reports also now includes an annual report on side letters, the Seward & Kissel Hedge Fund Side Letter Study, and the Seward & Kissel Seed Transactions Deal Points Study, which was just released.

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