New York remains the capital of the burgeoning global hedge fund industry, according to a new report.

Credit Agricole Structured Asset Management’s 2007 Industry Report said that, though most hedge funds are domiciled abroad, 60% are based in the U.S. New York alone boasts the principal operations of 25% of the world’s almost 10,000 hedge funds.

As of the end of last year, hedge funds managed $2.16 trillion, according to CASAM. Long/short equity is by far the largest strategy, with more than twice the assets of its nearest competitor. The strategy manages $568 billion, compared to $245 billion for event-driven multi-strategy funds and $221 billion for global macro funds.