5 Oct 2011
The CityUK research centre has published research showing that London's market share in hedge funds has broadly held steady versus New York City at about 19% of global industry assets. The finding is contained CityUK's 2011 report on Fund Management.
The report shows London remains the second largest global centre for hedge funds managers after New York. Its share of the global hedge fund industry more than doubled in the decade up to 2010 to 19%, whereas New York City fell from over 50% to around 43% currently.
The UK is much the largest European centre for the management of hedge funds. At the end of 2010, four-fifths of European hedge fund investments totalling $423 billion were managed out of the UK.
The report says that hedge funds’ assets under management increased by 13% in 2010 to $1.92 billion, up 18% over the year. Assets under management were nevertheless still below the record $2.15 billion managed at the end of 2007.
Growth in assets in 2010 was due both to high returns for the second year running, as well as a net inflow of new funds. The number of hedge funds totalled over 9,500 at the end of the year with new hedge funds launches outpacing fund liquidations for the first time since 2007.
Hedge funds saw a $65 billion inflow of new funds during 2010, with the bulk of inflows coming in the second half of the year. Prior to this, hedge funds saw a surge in redemptions and fall in liquidity, particularly in the latter part of 2008 and first half of 2009.
To read the full study please click here.
The report shows London remains the second largest global centre for hedge funds managers after New York. Its share of the global hedge fund industry more than doubled in the decade up to 2010 to 19%, whereas New York City fell from over 50% to around 43% currently.
The UK is much the largest European centre for the management of hedge funds. At the end of 2010, four-fifths of European hedge fund investments totalling $423 billion were managed out of the UK.
The report says that hedge funds’ assets under management increased by 13% in 2010 to $1.92 billion, up 18% over the year. Assets under management were nevertheless still below the record $2.15 billion managed at the end of 2007.
Growth in assets in 2010 was due both to high returns for the second year running, as well as a net inflow of new funds. The number of hedge funds totalled over 9,500 at the end of the year with new hedge funds launches outpacing fund liquidations for the first time since 2007.
Hedge funds saw a $65 billion inflow of new funds during 2010, with the bulk of inflows coming in the second half of the year. Prior to this, hedge funds saw a surge in redemptions and fall in liquidity, particularly in the latter part of 2008 and first half of 2009.
To read the full study please click here.
