Times Online – LONDON is steadily eroding America’s dominance in hedge funds, with the City now home to a fifth of fund assets under management, according to International Financial Services London(IFSL).
As London’s share of global assets has doubled in the past three years, America’s share has dropped from 86 to 62 per cent.
London’s success has been mainly because of increased investment in hedge funds by pension funds, according to IFSL, which promotes financial services in the capital.
Charlie Tritton, head of alternative investments at New Star Asset Management, the fund manager, said that the industry had been helped by a favourable regulatory environment.
He said: “The European markets are also undergoing change as a result of European integration. They are less trawled, therefore providing greater opportunities.â€Â
Marko Maslakovic, who conducted the study at IFSL, also cited the “proximity of clients and markets, a strong asset management industry†and the concentration of prime brokerage services in London.
