| Hedge Fund Observer: European hedge funds continue to pop up |
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| 30/07/2006 | |
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The hedge fund industry remains healthy in spite of its 2005 woes, according to a survey by Eurohedge magazine. At least 170 new European hedge funds were launched in the first six months of the 2006 calendar year – up from 150 in the first half of 2005. The new fund launches collectively raised assets of $11.4 billion. This 15% year-on-year growth in the number of hedge fund launches is a tribute to the "health and vibrancy" of the hedge fund industry in Europe, according to the magazine. The survey also found that the new hedge funds were raised by an increasingly wide range of institutional, boutique and start-up firms. However, the overall volume of assets raised by the new funds was slightly lower than in the first half of last year – at $11.4 billion compared to $13 billion. Eurohedge reports that this is due to the smaller number of "blockbuster' launches. In 2005, five new hedge funds had been launched with assets of $1 billion or more each. Equity strategies continue to account for the major share of new European hedge fund launches, with 106 of the 172 funds included in the EuroHedge survey – nearly two-thirds of the total – being equity funds. European long/short equity remains the largest single category, with 41 new funds raising a total of $2.2 billion. Global equity was the next biggest, with 32 funds raising $1.6 billion – a large rise on the 24 funds that raised $575 million in the first half of 2005. "The record pace of new fund launches shows an industry in good health," commented EuroHedge editor Nick Evans. "It demonstrates the growing enthusiasm of all types of investors for alternative investment strategies, the success of established hedge fund managers in expanding their businesses and the continued ability of talented new managers to start their own operations." J.L. |
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