With average hedge fund performance falling far short of investor expectations since the financial crisis (see Hedge Fund Ads: What’s to Crow About?), funds of hedge funds are naturally feeling the squeeze. Since 2007, the FoHF industry has shrunk from $1.1 trillion to $600 billion and the number of FoHFs managing $1 billion or more has fallen from 147 to 103 according to a recent InvestHedge survey. Five years ago, the 147 FoHFs in the billion dollar club were managing a total of $956 billion; today, only 78 of those FoHFs are still in the club and they are managing only $538 billion, 25% less than the $718 billion they were managing in 2007. Currently, the 10 largest FoHFs in the world – which manage a total of $161 billion – are the same FoHFs as the top ten in 2007, but that elite group has lost 49% of its collective AuM during the past 5 years. The largest FoHF on the planet right now is Blackstone, with a total of $41 billion in AuM.