By Niki NatarajanBlame it on Bernie Madoff. Union Bancaire Privée’s losses from the Madoff scandal pushed the Swiss fund of funds from its top spot on the InvestHedge Billion Dollar Club a year ago to fourth place at midyear. UBP still has $23.83 billion, having lost $18.95 billion in the first half, its 44.29% slide in assets representative of the industry’s much-diminished affluence.The collapse of Madoff’s Ponzi scheme, together with Lehman Brothers’ bankruptcy, has injured not only UBP but the entire funds of funds industry, which has been sinking for 18 months. The InvestHedge six-month survey of the largest funds of funds—those with $1 billion or more in assets under management—found 117 firms managing $613.17 billion at the end of June, a decline of 13.4% for the six month-period. The decline has slowed, however, since assets have decreased 38.9% from their $1 trillion peak at the end of 2007. Another...