Hedge funds are thriving in Europe, thanks to increased interest from pension funds and other institutions, both European and U.S. Regulatory changes that have made it easier for such investors to put money in alternatives.
The 50 firms in the Alpha Europe Hedge Fund 50 ranking collectively managed about $300 billion as of December 31, 2006, nearly 21 percent of the global hedge fund industry's then $1.46 trillion in assets.
The Alpha Europe Hedge Fund 50 has seen its asset totals soar since 2006. A year ago, no European firm managed close to $15 billion in single-manager hedge fund assets -- this year, three firms have more than that, led by Barclays Global Investors. BGI's $18.95 billion narrowly tops Man Investments, No. 2 with $18.8 billion in single-manager assets. At No. 3, with $15.83 billion in assets, is GLG Partners, led by former Goldman, Sachs & Co. partners Noam Gottesman and Pierre Lagrange.
For the first time in the four-year history of Alpha's Europe Hedge Fund 50 ranking, each of the top ten firms are headquartered in London, cementing the city's position as the hedge fund capital of Europe. To be included in this year's ranking, a firm had to have more than $2 billion in hedge fund assets.