European domiciles need to become more attractive to the growing hedge fund market. Indeed, data published in the May 2005 hedge fund manager/ CorrectNet fund administrator survey should form a timely reminder of this need. In particular, the results should be a reminder to press ahead with the regulatory and tax harmonisation required to facilitate greater cross-border access of European-domiciled hedge funds within Europe.
The survey suggests that global hedge fund assets are close to passing the $2trn mark at $1.92trn (£1.08trn), only a year after first breaking the $1trn mark, according to the same report. Of this $2trn, 65.1% ($1.26trn) represent single hedge funds with those remaining representing funds of funds, with the latter enjoying a higher rate of growth in the previous 12 months at 27.3% compared with the 22.6% growth in single hedge fund assets. According to the report, Europe’s share of the world’s hedge fund assets is currently at 34.2%, while the US has a 56.8% share.
