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Europe see rise in hedge fund assets

Hedge fundEuropean hedge funds registered the strongest growth in assets under management among all regions in 2015, growing their asset bases by almost 10%.

Investor allocations to the region stood at $40.5 billion (€36.2 billion) – a year-on-year increase of 110%. Combined with performance, assets under management (AUM) grew to $535 billion.

Yet hedge funds globally endured a volatile January, says Eurekahedge, with market instability producing a wide divergence in performance from region to region.

Asian managers – which expanded their AUM last year due to investor inflows and performance – posted their weakest returns for six months in January, with funds investing in Greater China seeing losses of 5.76% and Japanese funds seeing losses of 2.71%, according to Eurekahedge figures.

Event-driven hedge funds posted the worst returns among “strategic mandates”, falling 3.56%. Again Asian managers were the worst performers on a geographical basis, with losses of 4.65%.

The $80.9 billion Islamic funds industry managed to outperform the Dow Jones Islamic World Index in 2015, despite a challenging market environment that saw a spike in investor redemptions as oil-dependent economies in the Middle East faced worsening budget deficits.

Hedge funds assets under management stand at $2.24 trillion as of year-end 2015.

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