Wednesday, 24 August 2016
Last updated 16 hours ago
May 20 2013 | 12:23pm ET
Fears that new rules and regulation would gut London's hedge fund industry have proven exaggerated.
Europe's share of the global hedge fund industry has held steady at just over one-fifth, TheCityUK's annual report shows. Some 85% of that sum is managed from London, which accounts for 18% of the global hedge fund industry itself.
"It's a testament to the European hedge fund industry, and London in particular, that the feared exodus of hedge funds to offshore locations ahead of AIFMD has not materialized," TheCityUK CEO Chris Cummings said. "It's also another great example of the key role London plays as Europe's financial center and a gateway to the single market."
The growth of UCITS-compliant hedge funds, which will not be affected by the European Union's new rules, is credited with stemming a potential flood of assets exiting Europe.
London, as the world's second-largest hedge fund center, remains far behind the global hedge fund capital, New York, home to 42% of global hedge fund assets.