By Hedge Fund Insight staff
European hedge funds have shown consistent performance on the back of strong returns from the markets in the last year. YTD in 2013 the median return of Europe’s hedge funds is 6.3% (source: EuroHedge). This type of performance plus resurgent risk appetite among investors this year has resulted in greater allocations to hedge funds managed from Europe. Although managers from this region saw net outflows for four out of the last five years, the last twelve months have seen good inflows. This year there have been such large net subscriptions that nearly $50bn of new capital has been raised by managers from the Old World.
If asset flows continue at the current rate, by late next Summer the assets managed by the Continent’s hedge funds will have climbed to a new high, surpassing the previous peak of $473bn of October 2007.
Current assets under management of European hedge funds total $432.5bn according to Eurekahedge.