EUROPE - Record numbers of new European hedge funds have raised more than US$13bn of assets in the first half of 2005, according to research from news and performance data provider EuroHedge.
Eurohedge’s half-yearly survey of the European hedge fund industry shows that the number and size of new fund launches is both well up on the pace of the same period in 2004.
Last year, 128 new funds were launched in the first half of 2004 raising more than $9.5bn of assets compared to 150 for the first six months of this year.
Commenting on the findings, a spokesman for Eurohedge explained: “Assuming the current rate is maintained in the second half of the year, and there are several big funds lined up for launch in the coming months, 2005 is well on course to beat 2005’s record full-year numbers of 250 new funds raising $22bn.
“These large new launches demonstrate the growing trend to launch hedge funds that are on an institutional scale from the outset – not just in size and capacity, but also in their infrastructure and operational set-up.
“Additionally, long/short equity is still the biggest area for new funds – with 39 new European long/short funds starting in the first half, raising $2.66bn.
“A further 24 global equity funds raised $575m. Together with new Asian and emerging market funds managed in Europe, which raised $1.68bn, equity strategies accounted for more than 80 of the 150 new funds.”
In other non-equity areas, Eurohedge discovered that the average size of the fund was generally larger. By contrast, in macro just nine new funds accounted for $2.5bn in assets, and in fixed-income, four funds raised $1.3bn.
The news analyser said that in terms of assets, “macro saw by far the biggest increase”, up more than tenfold from just $237m in the first half of 2004, and $890m for the whole of last year, to $2.5bn in the first six months of this year alone.
Eurohedge also noted that fixed-income and credit were still growing strongly, up to $2.5bn from $2bn in the first half of last year, despite some of the problems seen in the credit markets in May.
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