Assets at multimanager funds ballooned from $185 billion at the end of 2019 to $350 billion at the end of last year, according to Barclays. Lately, the growth has been among copycats because the top three multimanager firms have closed their doors to new capital. In the old days, hedge funds struggled to replicate their returns the larger they got. New multimanager startup funds this year will test investors’ interest in these types of hedge funds. Part of the allure of setting up new multimanager funds stems from the higher-than-usual fees they are able to charge.

Source: Wall Street Journal February 23, 2024 11:36 UTC