An annual survey released yesterday reveals a 33 percent growth in assets for the Israel hedge fund industry as compared to just two years prior. According to the survey, carried out by Tzur Management hedge fund company, hedge fund managers in Israel are currently managing a whopping total of $2.7 billion.
The survey, which launched in 2012, now encompasses 89 fund managers - a 50 percent increase since its launch. In 2013 alone, 30 new funds were launched in Israel and the number of funds is projected to continue to rise over the coming years.
The survey also showed that Israeli hedge funders are punching above their weight internationally. The newly-established Tzur Capital Management Index displayed that Israel outperformed the global hedge fund industry in both 2012 and 2013 with average returns of 13 and 17 percent respectively. The Israel-focused hedge fund market has also outperformed the TA-25 Index over each of the past three years.
"When considering the impressive performance of Israeli hedge funds in recent years, it’s no surprise that we’re witnessing significant growth of both assets under management and the number of Israel based funds," said Tzur Management’s CEO and Founder Yitz Raab.
Raab also noted that the diverse range of investors in Israeli hedge funds - private, institutional, Israeli and foreign sectors - "demonstrates increasing confidence in Israeli managers and bodes well for the future."
Interestingly, the survey also illustrated the ability of Israeli hedge funds to reach beyond the pool of investors who choose to invest in Israel specifically; the majority of managers have no investments in the Israeli markets, and about 60% of total industry assets are invested outside of Israel.
"The data covered in our survey point to promising trend towards growth of the hedge fund industry," predicted Raab. "We are certainly looking forward to witnessing the continued success of Israeli funds."