In five years, Canadian hedge funds could double their assets under management, COO Connect reports, citing AIMA Canada figures.
This is an interesting (and perhaps astonishing) development, especially at a time when few other countries could hope to get anywhere near that figure. But while Wall Street is suffering due to a cornucopia of mistakes that were made over the past several years, investors are beginning to take notice of Canadaâ€™s hedge fund market. As a result, AUM has doubled in Canada since 2008.
Gary Ostoich, the chair of the Alternative Investment Management Association in Canada said that over the next five years he anticipates the Canadian Hedge fund space will double once more.
â€śWe have seen substantial AUM growth among our members,â€ť Ostoich, who is also the president of the Toronto-based Spartan Fund Management, told COO Connect. â€śStringent regulation and the conservative nature of Canadian financial institutions appeal to many investors. We are also seeing greater diversity of hedge fund strategies. Prior to 2008, the landscape tended to be long biased equity focused but now we are seeing more global macro, event-driven, credit and volatility funds. However, hedge funds generally are not focusing on exotic or esoteric products.â€ť
Right now, global AUM stands at an estimated $2 trillion. But according to COO Connect, Canadaâ€™s AUM comes in at approximately $30 billion. That said, if Canada can continue to double its AUM every five years or so, it would only take the nation a few decades to become a powerhouse thatâ€™s capable of competing with Wall Street.
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