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The Way the Asset Management Business Has Changed

  • There are currently 4,406 actively managed equity mutual funds managing about $5.9 trillion.
  • From the start of 2009 through December 2014, domestic equity mutual funds have seen net outflows of -$629.4 billion while bond funds have seen net inflows of $969.1 billion.
  • The ETF business has grown from 80 in 2000 to 1,603 funds managing a little over $2.1 trillion today.
  • There are roughly 8,500 hedge funds managing about $2.9 trillion today.
  • The private equity business has exploded in size. The industry has grown from a rounding error 20 years ago to nearly 5,000 in number managing $3.8 trillion unlevered today.
  • There is now roughly the same number of private equity funds as there are publicly traded companies. The number of publicly traded companies on the major exchanges fell from over 8,800 in 1997 to around 5,200.
  • Assets under management at activist hedge fund have grown by 275% since the end of 2008, much faster than the market as a whole. It is the “hot” strategy in the hedge fund world.
  • The average holding period of a stock in the United States has fallen from roughly 8 years in 1960 to 1.3 years today. The figure reached its nadir at one year in 2010.
  • The average notional price of a stock in the S&P 500 remains near all-time highs at $81.
  • Average daily volume on the NYSE peaked at 1.6 billion shares in 2006 to 1.1 billion shares today.
  • The Fed’s balance sheet has grown from roughly $900 billion in the beginning of 2008 to $4.5 trillion today. Roughly eighty percent of the balance sheet was held in U.S. Treasuries then. Only 55% of the balance sheet is held in Treasuries today.
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