London Cements Place As Euro. Hedge Fund Capital

Jun 27 2008 | 9:20am ET

London remains the hedge fund capital of Europe, and has strengthened its claims to being the industry’s second city behind New York, according to Alpha magazine’s latest ranking of European hedge funds.

Britain’s capital is home to 39 of the top 50 European hedge funds, including each of the top 10, led by Barclays Global Investors, the continent’s largest hedge fund firm with US$26.2 billion in assets under management. London-based hedge funds are also among the largest in the world: Barclays and GLG Partners (US$23.9 billion in assets) are among the 10 biggest funds in the world, while a total of seven London funds are in the world’s top 25 and 19 are among the world’s top 100.

“When we started investing in hedge funds 12 years ago, it was a challenge to find any really good managers outside the U.S.,” Ibrahim Gharghour, co-head of hedge funds for Investcorp, said. “London has matured in terms of quality of managers, their infrastructure, the depth of the market and standards of the people. And now U.S. funds, as they grow, must also have a presence there.”

The Londoners rounding out Alpha’s top 10 are Brevan Howard Asset Management (US$21 billion), Man Investments (US$20.9 billion), Landsdowne Partners (US$18.9 billion), BlueBay Asset Management (US$16.4 billion), Sloane Robinson (US$15.1 billion), Marshall Wace (US$15 billion), HSBC (US$13.6 billion) and The Children’s Investment Fund Management (US$13 billion).

All told, the biggest 50 European hedge fund firms manage $405.3 billion—one-fifth of total global hedge fund assets, Alpha said.

Outside London, four of the top 50 firms are based in Paris, with one each in Bilboa, Spain, Cyprus, Geneva, Moscow, Zurich, Switzerland, and the Channel Island of Guernsey.

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