GLOBAL - Hedge fund assets are likely to grow globally by as much as 30% per year over the next two years, according to ABN AMRO Asset Management.
The firm anticipates further expansion within the hedge fund sector, and has signalled its own plans to launch additional hedge fund products this year.
ABN AMRO said it added more than US$500m to its total hedge fund assets in 2004, with assets under management across all alternative investment strategies climbing from US$40m to more than US$2bn in three years.
Commenting on the firm’s business plans in 2005, Gary Vaughan-Smith (pictured), head of alternative investments, said: “2004 represented a landmark year in the development of the Alternative Investment Group. We saw significant growth in assets under management in our funds of hedge funds products, coupled with the launch of our first hedge funds – in emerging markets and in currency.
“We will be looking to build on that success, launching products in both the funds of hedge funds and single strategy arenas, and have set ourselves the target of having hedge fund assets in the region of US$3bn under management by the end of 2006.”
ABN AMRO said it was experiencing significant demand for hedge fund products from both institutional and private banking clients.
Vaughan-Smith said the firm’s strength as a distributor was key in building its hedge fund presence. “ABN AMR O has always enjoyed a reputation for nurturing talent and we will be looking to incubate and develop some of our finest talent over the next 24 months and, on the back of that, bring some exciting new products to the market.”
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