Investors, Not Performance, Boost HFs

European hedge fund assets rose nearly a quarter in the first half of the year as London consolidated its position as the center of Europe’s HF world, according to data from EuroHedge.

European hedge fund assets rose nearly a quarter in the first half of the year as London consolidated its position as the center of Europe’s HF world, according to data from EuroHedge. Assets under management in Europe’ hedge funds rose 23% to US$401 billion in the first six months of 2006, up from $325 billion a year earlier. The increase, of 44% year-on-year, is not attributed to performance hedge funds in Europe had a tough go in May and June but to institutional investors, which continued to put money heavily in alternatives. The biggest beneficiaries were the largest firms, with the top 25 hedge funds accounting for US$180 billion of the total. Man Group remained the continent’s biggest manager with $56.2 billion. New funds, which numbered more than 170, garnered $11.5 billion. Meanwhile, the U.K., home of Man, saw its share of total assets rise from 76% to 79%, or $317.5 billion. Far behind in second place was France with $20.6 billion and Sweden at $12.6 billion.