2011 Key Trends in European Hedge Funds Eurekahedge
Over the last few years no other sector of the global hedge funds industry has witnessed greater change than European hedge funds. The region witnessed exponential growth in the five years between 2002 and 2007, reaching a maximum size of US$472.8 billion by October 2007 with the total number of funds crossing the 3000 mark. However the industry saw its asset base reduce drastically during the global financial crisis, losing nearly 40% of the assets between January 2008 and March 2009. In this report we analysed the main trends observed over the last five years in European hedge funds, and as a special feature we explore the growth of UCITSIII hedge funds in the post-financial crisis world.
The growth in European hedge funds since 2000 can be seen in figure 1a while figure 1b displays the movement in industry assets since June 2009.
Figure 1a: Industry growth of European hedge funds in the past decade
Figure 1b - European hedge fund assets
The size of the region hedge fund industry bottomed out in March 2009, with assets at US$293.6 billion dollars. However the sector has posted a remarkable turnaround since then. Not only have assets recovered on the back of excellent performance and strong asset flows, but an increasing number of launches have the brought the total number of funds in the sector to historical highs. Currently the size of the European hedge fund industry stands at…