IPOs by Christian Louboutin Outlet Online Opalesque

'Permanent Capital' Is Back In Fashion

Thomson reports that results from an Ernst Young survey suggest 13% of hedge fund managers plan to raise what is generally referred to as "permanent capital" in the next two years (free registration required). This comes on the heels of a a good overview of hedge funds IPOs by Christian Louboutin Outlet Online Opalesque.

So "permanent capital" was on our minds when we received this article from a loyal reader about new ways that hedge funds are financing themselves. It's a summer 2007 piece in a Merrill Lynch publication billed as being "for the hedge fund Csuite". Here's the headline chart showing Eurodominance in hedge fund IPOs.

Professor Bill Fung also identified this phenomenon in his remarks at a recent conference on hedge fund replication (see related posting). Fung told the audience that in order to accurately replicate hedge funds, one needs to replicate how their liabilities behave, not just how their assets behave. (Although he was referring mainly to the use of leverage leading up to the recent credit crunch).