Wednesday, 24 August 2016
Last updated 5 min ago
Apr 16 2007 | 10:56am ET
Maybe rumors of New York’s demise aren’t greatly exaggerated, after all. International Financial Services, London said today that its hometown teams now manage 21% of worldwide hedge fund assets, up from 10% in 2002. New York, while still by far the largest hedge fund center in the world, saw its share of assets fall from 45% five years ago to 36% last year.
IFSL said that hedge fund assets in London grew six-fold during the period to $360 billion, a rate New York simply couldn’t compete with.
London’s position as the second city for hedge funds is due to stronger growth of hedge fund assets in Europe and Asia. The city is home to four-fifths of European hedge fund assets—a total of 900, IFSL reports. The study credited London’s “local expertise, the proximity of clients and markets, a strong asset management industry and a favorable regulatory environment” for its regional dominance.
IFSL estimates that hedge funds managed about $1.5 trillion at the end of 2006.