May 2022 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at March 2022. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
October 2021 | Eurekahedge
The Eurekahedge Cryptocurrency Hedge Fund Index was up 238.40% over the first eight months of 2021, outperforming Bitcoin which returned 163.35% over the same period. In 2020, cryptocurrencies were undoubtedly the best-performing asset class in the market, with Bitcoin posting a 300.17% return during the year. Bitcoin unexpectedly benefitted from the ongoing COVID-19 crisis as investors perceived the coin as an alternative safe-haven asset during market uncertainties. As a result, the market value of Bitcoin increased by more than 600% from its March 2020 low to the end of August 2021.
October 2021 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at October 2021. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
October 2021 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 7.83% as of August 2021 year-to-date, supported by the robust performance of the MSCI AC Europe IMI (Local) which gained 17.12% over the same period. In the first eight months of 2021, European equity markets posted robust gains despite the continued spread of COVID-19 in the region as many large Eurozone countries have achieved high levels of vaccine coverage which helped to alleviate the need to implement costly lockdowns and enabled their economies to remain largely open.
May 2021 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 3.83% as of March 2021 year-to-date, supported by the robust performance of the underlying equity market in the region as reflected by the 7.02% return of the MSCI AC Europe IMI over the same period. The speedy COVID-19 vaccine rollout on top of the accommodative monetary policy exhibited by the European Central Bank to support the economies from the ongoing crisis acted as a tailwind to the equity market in the region. The EURO STOXX 50 which represents the leading blue-chip companies in the Euro Zone recorded a double-digit return of 11.88% over the first three months. In the same vein, DAX and CAC 40 were up 9.40% and 9.29% over the same period thanks to the gradual economic recovery in the region as seen on their strong macroeconomic data.
May 2021 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at May 2021. Find out more about fund of hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
December 2020 | Eurekahedge
The Eurekahedge European Hedge Fund Index was down 2.31% as of October 2020 year-to-date, outperforming the MSCI AC Europe IMI, which lost 17.41% over the same period. In the first 10 months of 2020, the European equity markets plunged across the board as the COVID-19 pandemic worsened, forcing many European governments to implement stringent social distancing and lockdown measures which had a negative impact on economic activity, resulting in the weak performance of the region’s equity market particularly in February and March. The CAC 40 and DAX recorded 18.0% and 16.4% of losses in March alone. In terms of year-to-date, the FTSE 100 was the worst performer among its European peers, declining 26.1% during the first 10 months of 2020 as the negotiation around the Brexit transition also posed challenges in the UK. In the same vein, the CAC 40 and the DAX are down 23.2% and 12.8% over the same period.
December 2020 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2020. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
April 2020 | Eurekahedge
The Eurekahedge European Hedge Fund Index was down 2.48% as of February 2020 year-to-date, outperforming the MSCI AC Europe IMI, which lost 9.79% over the same period. In the fourth quarter of 2019, the European equity markets rose higher, supported by the positive geopolitical development surrounding the US-China trade negotiations as the two leading economies reached the phase-one deal, which was signed in January 2020. The DAX and CAC 40 gained 6.61% and 5.29% in Q4 2019, reaching new all-time highs. However, market risk sentiment shifted quickly in February 2020 as the extent of the COVID-19 outbreak outside China resulted in concerns over the global economic growth.
April 2020 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at April 2020. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
December 2019 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 5.16% as of October 2019 year-to-date, supported by positive geopolitical developments surrounding Brexit and accommodative ECB policies. The region’s underlying equity market, as represented by the MSCI AC Europe IMI gained 15.79% over the same period. The slowing economic growth in the region remained as the central bank’s primary concern, particularly after Germany’s gross domestic product contracted in Q2 2019, raising concerns over a recession. In response, the ECB enacted a deposit rate cut and restarted their asset purchase programmes in September, which boosted the equity market in the region. The DAX and CAC40 were up 21.86% and 21.12% respectively since the start of the year. The UK market was spooked by PM Boris Johnson’s firm stance towards no-deal Brexit and decision to prorogue the parliament in August, resulting in a 5.00% decline of the FTSE100 over the month. However, the situation has reversed as the PM reached an agree
December 2019 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2019. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
July 2019 | Eurekahedge
The Eurekahedge European Hedge Fund Index was up 2.96% year-to-date as of May 2019, trailing behind the region’s underlying equity market as represented by the MSCI AC Europe IMI which gained 8.92% over the same period. In 2018, European hedge fund managers posted losses under the combined onslaught of Brexit negotiation uncertainties, the Italian debt crisis and the escalation of the US-China trade war.
July 2019 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2019. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
June 2019 | Nicholas Holman and Jonathan Baird - Hogan Lovells
Back in March 2018 the European Commission announced a proposal for a supplementary Alternative Investment Fund Managers Directive (AIFMD) focussed on the subject of so-called "pre-marketing" of private equity and other alternative investment funds to European professional investors.
December 2018 | Eurekahedge
The Eurekahedge European Hedge Fund Index slumped 2.08% as of October 2018 year-to-date, ahead of the underlying equity market as represented by MSCI AC Europe IMI (Local) which declined 7.19% over the same period. The region’s equity markets have suffered from the pressure exerted by various political concerns in Italy and the United Kingdom. Unrealistic election promises by the Italian government led to a 2019 budgetary plan which was contradictory to their pledge of cutting down their debt, prompting criticism at Brussels.
December 2018 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2018. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
September 2018 | Mark White, Darragh Murphy, Tony Spratt, Hugh Beattie, Iain Ferguson and Anna Moran, McCann FitzGerald
We’re half way through 2018 and it’s been a busy six months in the regulatory space for asset managers. This briefing outlines a number of key developments at both domestic and EU level, regarding, regulatory returns, CP86, anti-money laundering, corporate governance, remuneration, depositaries and cross-border distribution of collective investment funds.
July 2018 | Eurekahedge
The Eurekahedge European Hedge Fund Index gained 0.56% in the first half of 2018, ahead of their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which was up 0.39% over the same period. European hedge funds returned 7.10% in 2017 on the back of the underlying equity markets’ rally throughout the year, supported by strengthening oil and commodity prices, combined with the unwinding of geopolitical risks within the region. Going into 2018, market volatilities returned and weighed down on the alternative investment industry’s performance. Regional risk outlook seemed to be tilted downward as trade concerns over the steel and aluminium tariffs imposed by the Trump administration and the uncertainties looming over Brexit deals may pose as headwinds against the European economies for the upcoming months.
July 2018 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2018. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
December 2017 | Eurekahedge
The Eurekahedge European Hedge Fund Index gained 6.91% in 2017 year-to-date, slightly behind their global peers’ performance as indicated by the Eurekahedge Hedge Fund Index which gained 6.93% over the same period. Hedge fund managers have been able to capture a portion of the underlying market’s rally as European economies recover over the year. Strengthening oil and commodity prices, combined with the unwinding of geopolitical risks will continue to support the region’s growth in 2018. The hedge fund industry is expected to benefit from the strong market performance of the region over the next year.
December 2017 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2017. Find out more about European hedge funds' assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
July 2017 | Eurekahedge
The European hedge fund industry has been gaining since the start of the year despite political uncertainty in the Eurozone area. Investor allocations into the industry stood at US$3.5 billion over the first five months of 2017, though the first two months of the year show investors’ redemptions to the tune of US$2.8 billion as concern arose over the outcome of the French presidential election results.
December 2016 | Eurekahedge
European hedge fund managers have had a challenging year in 2016, with redemption activity picking up for the past six consecutive months. Year-to-date investor redemptions stood at US$7.4 billion as of October 2016, a stark contrast from stronger investor allocations totalling US$32.4 billion over the same period last year.
December 2016 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at December 2016. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, strategy returns, fund size and geographic AUM, head office locations and the best and worst performances of the year.
July 2016 | Eurekahedge
The European hedge fund industry continues to gain traction among investors despite market turbulence dominating the trading landscape since the start of the year. Investor allocations into the industry stood at US$13.4 billion over the last five months of 2016, up US$4.2 billion compared to allocations over the same period last year. Manoeuvring volatile markets has proved to be a challenge with managers posting year-to-date performance-based losses of US$6.8 billion, compared to gains of US$14.3 billion over the same period last year.
July 2016 | Eurekahedge
Eurekahedge’s European hedge funds infographic sums up the industry as at July 2016. Find out more about European hedge funds assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, fund size and geographic AUM, domiciles, head office locations and the best and worst performances of the year.
July 2016 | Eurekahedge
Eurekahedge's UCITS hedge funds infographic sums up the industry as at July 2016. Find out more about UCITS hedge fund assets under management (AUM), asset flows into strategic and regional mandates, launches and closures, domiciles, head office locations, performance comparison, and the best and worst performances of the year.
June 2016 | Michelle Moran, John Young and Monica Gogna, Ropes & Gray
The Market Abuse Regulation (MAR) will take effect on 3 July 2016. MAR contains the rules on insider dealing, unlawful disclosure of inside information and market manipulation that will apply throughout the European Economic Area (EEA). It updates the existing market abuse regime, adding a great deal more detail to the existing rules and widening its scope to a range of financial instruments traded on venues other than the main EEA exchanges.
May 2016 | Simon Crown and Owen Lysak, Clifford Chance
On 23 June 2016, the UK will decide in a referendum whether to remain in or to leave the European Union. Should the UK vote in favour of leaving, so-called Brexit, the UK Government will initiate a procedure leading to the UK's withdrawal from the EU and, ultimately, to the establishment of a new relationship with its former EU partners. Precisely what this will look like, and when it will come about, is uncertain and there is much debate on whether the consequences will ultimately be positive or negative for the UK. What is certain, however, is that Brexit will have a significant impact across a range of sectors - financial services, trade, employment, tax, competition and others. Asset managers, be they based in the UK, the EU or elsewhere, will be caught up in this, and will find themselves affected by Brexit, albeit to varying degrees.
March 2016 | Eurekahedge
Noemi Holecz, a risk and portfolio manager of Loyal Explorer Fund shares how the fund stands out from competition through advanced quantitative methodologies utilised by Colombus Investment Management.
December 2015 | Eurekahedge
The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) breach past its October 2007 pre-crisis AUM of US$478.1 billion. The situation in Greece earlier this year has not deterred AUM growth in the region with total assets climbing steadily to reach US$525.9 billion as at October 2015, managed by a total of 3,998 hedge funds. On a year-to-date basis, the total AUM of European hedge funds has grown by US$39.1 billion, largely on the back of strong investor flows which have account for the bulk of this growth.
December 2015 | Eurekahedge
AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meet their financial goals. By combining investment insight and innovation with robust risk management, AXA IM has become the chosen investment partner of investors worldwide. Eurekahedge speaks to Larry Jones, Head of Portfolio Management, Alternative Solutions to find out more.
December 2015 | Vineeta Tan, Islamic Finance News
The Grand Duchy of Luxembourg has a long-standing reputation as being one of the foremost financial centres for the international community and building on its solid repertoire, enabling regulations and strong political will, also made a name for itself in the Islamic finance universe. Vineeta Tan provides an overview of the country’s Shariah finance terrain.
December 2015 | Michael Raffan, David Rouch, Mark Kalderon, James Smethurst, Alexander Glos, Raffaele Lener and Steven Lightstone, Freshfields Bruckhaus Deringer
The Council of the EU formally adopted the Securities Financing Transactions Regulation (SFTR) on 16 November 2015, which will form part of the EU’s package of legislation targeted at reforming shadow banking and aims to improve transparency in the securities financing transactions (SFT) market. The SFTR is expected to be published in the Official Journal of the EU shortly and will enter into force 20 days after its publication. Set out below is an outline of the SFTR’s scope, its requirements and the dates by which those requirements are to take effect.
October 2015 | Eurekahedge
Saemor Capital is a specialist in quantitative investment management, focused on absolute return generation. The company was founded in 2008 with the backing of insurance company AEGON as a cornerstone investor. The team consists of award-winning equity managers with vast experience in European equities. The majority of the investment team has worked together for over eight years. Managing approximately US$600 million, Saemor Capital is AIFMD-regulated and eligible to passport its distribution activities across Europe.
September 2015 | Ann Shiels, A&L Goodbody
The Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD) brought with it significant changes for the regulation of the funds industry in Europe and here we take a look at events since implementation twelve months on from the close of the transitional period, focusing on the AIFMD regime in Ireland.
July 2015 | Eurekahedge
The European hedge fund industry has been gaining ground despite the challenging circumstances in the Eurozone region. Given the strong recovery posted by European hedge funds, March 2014 saw the industry’s assets under management (AUM) of US$478.1 billion breach past its October 2007 pre-crisis AUM. The onset of the recent Greek crisis has not deterred AUM growth in the region as AUM continued to climb steadily from 2012 onwards, reaching US$506.8 billion, managed by 4,016 hedge funds in May 2015. On a year-to-date basis, the total AUM of European hedge funds grew US$20.1 billion, largely on the back of performance-based gains which account for roughly two-thirds of the total growth in European AUM in 2015.
July 2015 | Eurekahedge
The Undertakings for Collective Investment in Transferable Securities, or ‘UCITS’, was designed to meet investor demand for well-regulated instruments monitored by improved compliance standards in the areas of investor protection, regulation and disclosure. The demand for UCITS products grew steadily after the financial crisis as UCITS hedge funds are of interest to investors especially during times of market stress. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the UCITS V being the most recent set of regulations implemented.
July 2015 | Aki Corsoni-Husain and Elina Mantrali, Harneys
Following the implementation of the EU Alternative Investment Fund Managers (AIFM) Directive (2011/61/EC) and associated legislation, Cyprus now lays claim to being a growth jurisdiction within the European Union for the establishment and servicing of boutique and low cost alternative investment funds based locally or offshore. The choice of fund administrator is of paramount importance to the set-up of any hedge fund and in Cyprus there are many reasons to use or establish locally-based operations.
July 2015 | Mark Browne, Dechert LLP
Ireland enacted legislation earlier this year which provides for a new type of corporate fund – the Irish Collective Asset-management Vehicle (ICAV). The ICAV is an innovative corporate structure specifically designed for use as an investment fund. It features a number of specific advantages when compared to previous corporate structures available for use as funds in Ireland, one of the primary jurisdictions for domiciling investment funds in Europe. This article outlines the salient features of the ICAV, highlights its differentiating characteristics and explores the instances where it is most likely to be of assistance to fund promoters in both the traditional and alternative spaces.
April 2015 | Eurekahedge
Founded in 2003, EuroFin Asia Group is an independent specialty finance house offering investment opportunities across the capital structure spectrum, with a focus on real economy businesses and is located in Singapore and Geneva. With 25 years experience in trade finance, structured finance and commodities trading, get a flavour of commodity trade finance with Christian Stauffer, CEO at Eurofin Asia Group on how the structural aspects of financial trading funds offer growing opportunities in the Asian banking ecosystem despites the regulations most recently brought by Basel III.
April 2015 | James Anderson, Stephen G. Sims, Gregory P. Norman and Thomas J. Kim, Skadden, Arps, Slate, Meagher & Flom LLP
New rules effective from today in the U.K. are likely to have material impact on the tax treatment of payments by a fund to its U.K.-based management executives and service providers. The rules cover many areas of fund manager taxation that previously have not been specifically legislated for in the U.K. Given the haste with which the new rules were constructed and passed into law, it is not surprising that many situations are now being analysed with a degree of concern, in particular where the rules have had some unexpected, and in some cases, potentially negative effects.
March 2015 | Pierre Oberlé, ALFI (Association of the Luxembourg Fund Industry)
Conventional asset management has seen impressive growth over the last few decades and funds have become a well-established financial product. However, Shariah compliant asset management remains a niche within conventional asset management. Why is Islamic asset management, Pierre Oberlé asks, still small and how can it further develop?
February 2015 | Maurice Allen, Brenda A. Coleman, Michael Kazakevich, W. Jane Rogers, Andrew Howard and Paola Bahari, Ropes & Gray LLP
Week two of the new year marked a significant step in the development of the European Private Placement Market. The Loan Market Association (LMA) launched template documents for use in European private placement transactions. The development of standardised documentation will improve the visibility and perception of the product and might provide the European private placement market with the potential to grow, in time, into a notable competitor to the US market.
January 2015 | Dr. Matthäus Den Otter, Carnegie Fund Services
Switzerland has always been an attractive and relatively easily accessible market for the distribution of foreign funds. As at end-November 2014, the total volume of funds registered for sale to retail investors (including institutional share classes) amounted to more than CHF 850 billion. This is not the total market picture, however, as according to the Swiss National Bank, at the end of 2014 another approximately CHF 800 billion have been privately placed into securities accounts of Swiss and foreign private HNWI'’s and institutional clients held with banks in Switzerland.
December 2014 | Eurekahedge
The European hedge fund industry continues its recovery amid a difficult market environment with current assets under management (AUM) standing at US$487.9 billion overseen by a population of 3,949 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was 24.9% which has since fallen to 22.9%. The total AUM of European hedge funds grew US$33.4 billion in 2014, largely on the back of new investor inflows, and is now 3.2% above its pre-crisis peak in 2007.
October 2014 | Stephen Culhane, Simon Firth, Dr. Thomas A. Jesch, LLM, Daniel Lewin and Hartmut T. Renz , Kaye Scholer LLP
There is significant potential for alternative investment fund managers (AIFMs) to access Germany's large base of institutional investors. Despite the recent post-AIFMD challenges — including the abolition of Germany's pre-AIFMD private placement regime (NPPR) and BaFin's (the German supervisory authority) restrictive interpretation of reverse solicitation practices — Germany is far from the 'impenetrable' jurisdiction for marketing purposes under AIFMD or the KAGB (Kapitalanlagegesetzbuch, the 2013 German implementing legislation) that many clients assume. Not only is it possible for a non-EU fund to become authorised for marketing in Germany to professional and semi-professional investors under the KAGB, it is in fact not as difficult as previously assumed.
September 2014 | Eurekahedge
UCITS, as defined by the EU, refers to the term ‘Undertakings for Collective Investment in Transferable Securities’. They arose out of calls for an increase in the regulatory oversight of alternative investment managers, setting strict standards in the areas of investor protection, regulation and disclosure. The regulatory bodies of the EU are continually updating and improving upon the product to maintain its relevance to investors, with the most recent UCITS V set of regulations to be implemented by 17 September 2014.
September 2014 | Pierre Berger, Olivier Van den broeke and Simon Landuyt, Baker & McKenzie
The European Union's Alternative Investment Fund Managers Directive (the ‘Directive’) provides for comprehensive changes in the regulatory framework applicable to alternative investment fund managers (AIFMs) that manage or market alternative investment funds (AIFs) within the European Union.
July 2014 | Mark Browne, Dechert LLP
The use of established third-party platforms has become increasingly popular for asset managers launching UCITS-compliant funds in recent years. The indicators are that this trend is likely to be even more pronounced among managers seeking to establish alternative funds in compliance with the EU Alternative Investment Fund Managers Directive (AIFMD). This article provides an overview of some of the key considerations when negotiating the on-boarding of an asset manager onto an existing third-party platform in either the UCITS or AIFMD environments.
June 2014 | Alessandro E. Corno, Eriprando Guerritore and Giovanni Meschia
On June 8, 2011, the European Parliament and the European Council issued Directive 2011/61/EU on alternative investment fund managers (the AIFM Directive). The AIFM Directive applies to alternative investment fund managers that manage and/or market alternative investment funds (AIFs)—investment funds other than UCITS funds—in the EU and lays down a set of harmonised rules regarding authorisation, operation, and transparency. The managers of real estate funds, private equity funds, venture capital funds, infrastructure funds, and hedge funds fall within the subjects to whom the provisions of the AIFM Directive apply.
May 2014 | Olivier Sciales, Chevalier & Sciales
With little more than five months to go before alternative managers active in Europe must be fully compliant with the European Union’s Alternative Investment Fund Managers Directive, Luxembourg is perfectly positioned to accommodate fund firms, from global investment houses to specialist boutiques, eager to exploit the potential of a passport to an EU-wide market.
April 2014 | Eurekahedge
The European hedge fund industry continued its recovery amid a difficult market environment with current assets under management (AUM) standing at US$461.7 billion overseen by a population of 3,988 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of Global AUM was 24.9%, which has since fallen to 22.7%. The Eurekahedge European Hedge Fund Index gained 8.39% over the past 12 months, with total AUM of European hedge funds growing US$83.5 billion during the same period, bringing it close to their 2007 high.
April 2014 | Rebecca Simmonds, Islamic Finance News
There have been no legislative changes affecting Islamic finance in Russia over the last six months, with providers of Islamic financial products operating within the country’s existing regulations. However the main financial regulator, the Central Bank of Russia, has made recent enquires with financial institutions in the country currently offering Islamic finance products regarding their facilitation and implementation under the existing legislation.
January 2014 | Sarah Bowles, Darren Fox, Rolfe Hayden and Gaven Cheong, Simmons & Simmons
The European Union Directive on Alternative Investment Fund Managers (Directive 2011/61/EU) (AIFMD) was required to be implemented into the national laws of the 28 Member States of the European Union (EU) by 22 July 2013 and also into the national laws of the three additional European Economic Area (EEA) states (Norway, Iceland and Liechtenstein) by a date to be determined. On 19 December 2012, the European Commission (the Commission) published a delegated regulation supplementing AIFMD (the Level 2 Regulation), which sets out further detail around certain other provisions in AIFMD and is directly applicable in the Member States without the need for implementation.
October 2013 | Eurekahedge
The European hedge fund industry continued its recovery amid a difficult market environment with its current assets under management (AUM) standing at US$407.8 billion overseen by a population of 3,900 hedge funds. At its peak in October 2007, the European hedge fund industry’s share of global AUM was almost 25% and currently it still remains below that level at 21.4%.
October 2013 | Said Qaceme
Islamic microfinance, still a nascent industry, has the potential to help alleviate poverty in an ethical way and empower Muslim and non-Muslim micro-entrepreneurs. Said Qaceme looks at how setting up a microfinance investment vehicle may help realise this potential.
September 2013 | Mariano Giralt, Adrian. R. Fenton and Anthony Leone, BNY Mellon
With the FATCA Model Intergovernmental Agreements in place and European countries welcoming the initiative, will FATCA provide a global framework to achieve greater tax transparency?
September 2013 | Simon Gleeson, Kevin Ingramand Martin Sharkey, Clifford Chance
The securitisation market faces tougher regulation. Clifford Chance experts outline the current regulatory landscape and assess what may lie ahead.
August 2013 | Shane Coveney and Elaine Keane, A&L Goodbody
On 26 June 2013, the European Commission issued draft regulations (Regulations) that proposed a new type of collective investment framework allowing investors to put money into companies and projects that require long-term capital. The European Commission proposal seeks to achieve the general objectives of (i) increasing the means for long-term financing across all sectors of the European economy and (ii) improving the coherence of the single market.
July 2013 | Joëlle Hauser, Caroline Migeot and Alfred Sawires, Clifford Chance
The European Securities and Markets Authority (ESMA)'s consolidated Guidelines on ETFs and other UCITS issues (Guidelines) entered into force on 18 February 2013. On the same day, the Commission de Surveillance du Secteur Financier (CSSF) published its Circular 13/559 incorporating the Guidelines into its supervisory practice. In addition, ESMA published Questions and Answers (Q&A) om 15 March 2013 (updated on 11 July 2013) on the practical application of the Guidelines.
July 2013 | Catherine Fitzsimons, Walkers Ireland
The hedge fund landscape changed dramatically in 2008 with assets under management in severe decline, the imposition of redemption gates, NAV suspensions and general restrictions on investor withdrawals being imposed on a scale that was previously unseen. As Lord Turner, Chairman of the UK Financial Services Regulatory Authority, noted, although specific national banking crises in the past have been more severe, none have had the global impact of the 2008 financial crisis.
June 2013 | Eurekahedge
The European hedge fund industry has witnessed significant trends over the last 13 years, starting with a period of strong growth, a broad-based decline in the industry and a recovery phase. In 2000 there were less than 500 European hedge funds with total assets under management (AUM) of US$39 billion. Over the next seven years the total number of funds increased tremendously to cross the 3,000 mark while AUM increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007.
June 2013 | Rolfe Hayden and Maureen Gleeson, Simmons & Simmons
The European Directive on Alternative Investment Fund Managers (AIFMD)1 came into force on 21 July 2011. It is now required to be implemented into the national laws of the 27 Member States of the European Union (EU) and the 3 additional European Economic Area (EEA) states (Norway, Iceland and Liechtenstein) by 22 July 2013.
May 2013 | William Yonge and Torsten Schwarze, Morgan, Lewis & Bockius LLP
New clearing, risk mitigation, and reporting obligations imposed on certain derivative contracts.
On 15 March, the first six implementing measures of the European Market Infrastructure Regulation (EMIR) entered into force, marking the beginning of the gradual implementation of EMIR over the next two years. EMIR applies widely to both financial and nonfinancial counterparties to derivative contracts, including energy derivatives. In particular, new clearing and risk mitigation requirements for uncleared trades will apply to over-the-counter (OTC) derivative contracts, and a new reporting requirement will apply to both OTC and exchange-based derivative contracts. Some of these requirements are already in force.
May 2013 | Mark Browne, Mason Hayes & Curran
One of the primary stated aims of the Alternative Investment Fund Managers Directive (AIFMD) was to increase investor protection. A key step in this regard was the imposition of a standard requirement that alternative investment funds managers (AIFMs) falling within the scope of the AIFMD and marketing their funds into Europe ensure each relevant alternative investment fund (AIF) which they manage appoints a third party depositary with respect to its underlying assets3.
April 2013 | Eurekahedge
The UCITS hedge funds industry has witnessed tremendous growth over the last four years, both in the number of funds and in assets under management (AUM). As at the start of 2013 the total number of funds in the industry is estimated at 949 with AUM standing at US$215 billion.
April 2013 | Bradley Phillips, Michael Alliston, Nigel Farr, Scott Cochrane, Thiha Tun and Tim West, Herbert Smith Freehills LLP
The Chancellor's Budget rhetoric emphasised the UK's commitment to being a world leader in the asset management sector: the Chancellor stating that "in places like Edinburgh and London, we have a world beating asset management industry. But they are losing business to other places in Europe. We act now with a package of measures to reverse this decline".
March 2013 | Vladislav Zabrodin and Anna Leksashova, Capital Legal Services
Muslims comprise around 15% of the Russian population and the country has vast potential for Shariah compliant finance across its multiple and varied territories. Vladislav Zabrodin and Anna Leksashova discuss the increasing level of Islamic activity occurring across its retail, capital and corporate finance markets.
February 2013 | Mark Browne, Mason Hayes & Curran
The delegation model of fund management, whereby self-managed investment vehicles or their management companies appoint third party investment managers and advisers, has been a key basis upon which the success of the funds industry in Ireland has been built. There are currently in excess of 5,000 Irish domiciled funds and sub-funds, with assets in excess of 1 trillion euro, which have been established by over 400 fund promoters based in over 50 countries.
January 2013 | Heiko Stoll and Dr. Bernulph von Crailsheim, Simmons & Simmons
Draft legislation (the Draft) issued by the Ministry of Finance on December 4th 2012, and designed, inter alia, to implement the AIFM-Directive into German tax law, will make significant changes to both the scope of the German Investment Tax Act (InvTA) and the taxation of German investors under InvTA. This note explains recent developments in connection with these proposed changes and their potential impact on funds not established under German law. In particular, investors in certain non-German funds may in future cease to qualify for tax transparent treatment and, instead, be subject to a less beneficial lump-sum tax regime.
November 2012 | Stephen P. Wink, Vladimir Maly, Gitanjali P. Faleiro and Stefan Paulovic, Latham & Watkins LLP
This edition of our update on the pan-European short selling Regulation focuses on the implications of the Regulation for market participants in the United States (US). In particular, we focus on market participants whose trading activities are conducted in the US in financial instruments that have a nexus with the European Union (EU), such as a parallel EU listing of a financial instrument or an EU listing of the underlying financial instrument. Such activities, which may subject the market participant not only to the US short selling regime, but also to the Regulation,3 include short sales of (i) certain American Depositary Receipts (ADRs) of EU-listed issuers, and (ii) dual listed securities of issuers that are concurrently listed on one of the EU and US trading venues.
October 2012 | Eurekahedge
European hedge funds have witnessed a challenging investment environment over the last two years amid heightened volatility, recessionary pressures and concerns over the European sovereign debt situation. While facing increased regulations from governments, the industry also saw net redemptions by investors in 2011 and 2012. The region’s hedge funds have adapted to the changed landscape through implementing various changes and as of end-September 2012 the Eurekahedge European Hedge Fund Index remains in positive territory for the year with gains of 4.48%.
October 2012 | Vladimir Maly, Stephen P. Wink, Gitanjali P. Faleiro, Latham & Watkins
As previously described in our Client Alert on the pan-European short selling regulation, the European Commission (the Commission) adopted a proposal on September 15, 2010 to harmonise the regulation of short sales and credit default swaps across the European Union. On March 14, 2012, the European Parliament and the Council of the European Union (the Council) each voted to adopt the proposed regulation, after including a number of significant amendments (the Regulation).
October 2012 | Jan Dinger, Advent Software
Despite its leading position as a western Islamic finance hub, the UK Islamic finance industry faces growing challenges including the lack of a lender of last resort and the absence of a UK sovereign sukuk. Jan Dinger explores.
September 2012 | Robert Eberius, Dr. Carsten Fischer, Dr. Till Friedrich, Martin Hüwel, Angelo Lercara, Achim Pütz, Florian Rinck, Daniel Schäfer, Hans Stamm, Dr. Benedikt Weiser and Dr. Frank Wilbert, Dechert LLP
The German Ministry of Finance (BMF) on 20 July 2012 published the draft of a bill (Draft AIFM-Act) to implement the Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD) into German law. Within the framework of implementing the AIFMD, the Draft AIFM Act provides, in particular, for the repeal of the German Investment Act (Investmentgesetz – InvA), which implemented the UCITS Directive 2009/65/EC (UCITSD) among other things.
August 2012 | James Tinworth, Stephenson Harwood
While there are many challenges posed by the EU’s directive on alternative investment fund managers (AIFMD), the ones that everyone seems to focus on are those regarding the AIFMD’s depositary requirements. This note looks at these requirements in more detail and considers the extent to which they are relevant to EU managers of non-EU AIFs and non-EU managers of AIFs.
August 2012 | Eleanor de Rosmorduc and Jean-Nicolas Durand
Eleanor De Rosmorduc and Jean-Nicholas Durand question why success in the retail market is necessary for Islamic finance to reach a viable scale in Europe.
One of the sensible things that emerged from the recent financial crisis is a more realistic approach to estimating the growth rate of Islamic finance. Indeed, the 2012 Global Islamic Finance Report foregoes the temptation to make any global predictions at all.
July 2012 | Emily Yiolitis and Aki Corsoni-Husain, Harneys
Directive 2011/61/EU on Alternative Investment Fund Managers, known colloquially as the ‘Alternative Investment Fund Managers Directive’ or the ‘AIFMD’, will overhaul the pan-European regulatory regime applicable to the managers of hedge funds, real estate funds, private equity and other collective investment schemes containing, what is loosely being described as, ‘alternative investments’.
July 2012 | Daniel Richards, Ogier
A founder member of the European Union benefiting fully from free movement of capital and freedom of establishment within the EU, Luxembourg is also one of the largest global financial centres, benefiting from flexible and attractive legal, regulatory and tax regimes and a significant concentration of professional service providers to the financial services industry.
June 2012 | Eurekahedge
Among all the regions in the global hedge fund industry, Europe has witnessed the most dramatic changes over the last five years. At the start of the new millennium the total assets under management (AUM) in the industry were only US$39 billion. Over the next seven years this figure increased nearly twelvefold to reach a maximum of US$472.8 billion by October 2007, while the number of funds also crossed the 3,000 mark by this time.
June 2012 | Kevin P. Scanlan, Matthew Kerfoot, M. Holland West and Jeremy I. Senderowicz, Dechert
European financial markets have experienced volatility and have been adversely affected by concerns regarding rising government debt levels, credit rating downgrades, and possible defaults on or restructuring of government debt of various countries, most notably Greece. These events have affected the value and exchange rate of the euro and have had varying impacts on fund strategy, performance, investments, operations, liquidity and counterparties.
June 2012 | Ogier
A founder member of the European Union benefiting fully from free movement of capital and freedom of establishment within the EU, Luxembourg is also one of the largest global financial centres, benefiting from flexible and attractive legal, regulatory and tax regimes and a significant concentration of professional service providers to the financial services industry.
June 2012 | Alix Prentice, Assia Damianova and Nick Shiren, Cadwalader Wickersham & Taft LLP
On 24 March 2012, the European Parliament’s Regulation on “short selling and certain aspects of credit default swaps” (the Regulation)1 came into force.
May 2012 | Sam Shires and Stephen Ozanne, AO Hall Advocates
The Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFM Directive) sets out new rules that are being introduced in the European Union (EU) in respect of the authorisation, operation, and ongoing reporting for managers of alternative investment funds (AIFMs) which manage and/or market alternative investment funds (AIFs) in the various member-state countries of the EU.
April 2012 | Eurekahedge
UCITS hedge funds have witnessed significant growth since 2007 as managers have continued to attract investment interest from insurance companies, pension funds and other institutional investors. As illustrated in figure 1, assets in UCITS compliant hedge funds have expanded nearly threefold with 912 managers overseeing US$190 billion of capital as at end-February 2012.
April 2012 | Fadi Khoury, Norton Rose
The recent economic landscape has seen a significant regulatory overhaul of the financial services sector in Europe. This article highlights the impact of the European Union Directive on Alternative Investment Fund Managers (AIFMD) and how it will affect Australian fund managers seeking to undertake capital raising activities in Europe.
April 2012 | David Williams, Tracy Gilvarry and Andrew Gill, LK Shields Solicitors
With the 22 June 2013 deadline for the implementation of the Alternative Investment Fund Managers Directive (Directive 2011/61/EC) (the Directive) fast approaching, fund managers based outside the EU need to consider how prepared they are for its introduction
April 2012 | Stephen Carty, Maples and Calder
Since December 2002, foreign institutional investors have been permitted to invest in China A Shares listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the Qualified Foreign Institutional Investor (QFII) programme. The QFII programme allows licensed foreign investors to invest in China A Shares in the local currency provided that certain minimum criteria are met. The return on the investment, including dividends and capital gains, can be legally exchanged into foreign currency and repatriated
January 2012 | Mark Browne, Mason Hayes & Curran
Over the last 25 years, Ireland has earned a reputation as a leading domicile for internationally focused regulated investment funds. However in more recent years it has also grown to become the leading European jurisdiction for the establishment and servicing of alternative investment schemes and hedge funds in particular. Recent market statistics show that over 63% of European domiciled hedge funds currently use Irish legal structures while over 40% of global alternative investment funds (both Irish and non-Irish domiciled) are administered in Ireland.
December 2011 | Eurekahedge
After posting strong growth in 2009 and 2010, European hedge funds have faced some challenging times in 2011. The Eurekahedge European Hedge Fund Index was down 5.54% November YTD while assets under management (AuM); which had crossed the US$400 billion mark earlier this year, fell back to US$380 billion.
November 2011 | Christos Vasiliou, KPMG Cyprus
The European Securities and Markets Authority (ESMA); the successor of CESR, has been assigned with the mandate of providing the European Commission with proposals regarding the AIFMD implementing measures (i.e. implementing acts and delegated acts). ESMA has published a Consultation Paper (CP) containing its draft proposals which shall be finalised in the light of the feedback received and be subsequently submitted to the European Commission by 16 November 2011.
November 2011 | Mark Browne, Mason Hayes & Curran
Recent research shows that the number of alternative managers utilising UCITS as their fund structure is growing steadily, with the overall number of ‘newcits’, or alternative UCITS, now in excess of 1,000, of which nearly 700 were established since the financial crises of 2008. However, following the successful implementation of the UCITS IV regulatory updates earlier this year, increased attention is now focusing on how best to capitalise on the international restructuring opportunities available for UCITS in this new environment.
November 2011 | Ali Ceylan and Burak Gencoglu, Baspinar & Partners Law Firm
The market share of participation banks in Turkey has increased since the 2001 crisis. Ali Ceylan and Burak Gencoglu delve into the banking laws in the country and discuss how it may affect the Islamic finance industry.
October 2011 | Eurekahedge
UCITS III hedge funds have continued to post significant gains through 2011, both in terms of assets under management (AuM) and the total number of funds. As at end-August 2011 we estimate there to be 740 unique managers1 with assets of nearly US$200 billion.
October 2011 | Nicholas Warren, Mamo TCV Advocates
During the course of discussions with fund promoters, many different queries are posed on how alternative investment funds; referred to as Professional Investor Funds (PIFs) in Malta, may be set-up and structured. Such queries usually revolve around the financial services regulator Malta Financial Services Authority (MFSA), time to licence, the need of service providers (including Directors) to be established/based in Malta and their availability on the island, taxation issues, and obviously cost. Malta has been building its reputation as a flexible yet onshore EU domicile and is competing well with its larger and more established European competitors, which begs the question - why are fund promoters choosing Malta?
September 2011 | Pierre Oberlé, Association of the Luxembourg Fund Industry
Pierre Oberlé looks at the special benefits Luxembourg offers to Shariah compliant fund promoters, and reviews the latest developments in this area.
Luxembourg’s strengths in conventional investment funds make Shariah compliant investment funds a natural next step. Over the past 20 years, the Grand Duchy has become the leading centre for global fund distribution and Europe’s number one fund domicile in terms of assets. It now also ranks in the top five domiciles for Islamic funds.
September 2011 | Mark Browne, Mason Hayes & Curran
The key role Ireland plays as an administration and servicing hub for funds domiciled in offshore jurisdictions continues to grow. The latest industry figures show that an incredible 43 per cent of global hedge fund assets are now administered in Ireland. This amounts to some €987 billion held in over 6,000 non-Irish funds which together represent almost 50% of the total assets under administration in Ireland.
August 2011 | Mark Browne, Mason Hayes & Curran
The drift of funds from offshore jurisdictions to Ireland is continuing, with further asset managers announcing they are to take advantage of Ireland’s streamlined redomiciliation regime to move existing funds to Dublin.
A recent example was the Sarasin Guernsey fund range, which has been active in Guernsey for 20 years but recently announced that it is redomiciling to Ireland in order to enable the funds to be registered as UCITS.
July 2011 | Angelos Gregoriades, KPMG Ltd
Cyprus is a cost-effective EU, OECD, FATF and Euro Zone jurisdiction with the lowest corporate tax rate in the EU. Its business and commercial law is based on English law. It offers platforms for pursuing alternative investment strategies both through Cyprus UCITS and through Cyprus alternative investment funds. Cyprus has also reputed professionals regarding investment fund administration and taxation; e.g. 90% of Cyprus accountants hold one of the two top UK professional qualifications and have acquired significant experience in the financial centre of London.
July 2011 | Elaine Keane, Maples and Calder
Under the auspices of UCITS III, management companies (“ManCos”) and self-managed investment companies (SMICs) have been organised and maintained in accordance with the requirements of the Management Directive (Undertaking for Collective Investment in Transferable Securities Directive 2001/107) such that the board of directors are required to carry out eight key functions, being: decision taking, monitoring compliance, risk management, monitoring investment performance, financial control, monitoring capital, internal audit and supervision of delegates in the course of their management of the relevant UCITS.
June 2011 | 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.
April 2011 | Eurekahedge
The interest among investors for UCITS III hedge funds surged in 2010 and has continued into the start of 2011. In this report, we monitor the developments in UCITS III hedge funds and touch upon some of the key aspects of the industry such as location of managers, strategies being employed as well as looking at some of the main performance trends.
April 2011 | Anne-Marie Godfrey, Bingham McCutchen LLP
In the aftermath of the financial crisis, demand on the part of institutional investors for more regulated, transparent and liquid collective investment schemes, and continuing uncertainty over the impact of the Alternative Investment Fund Managers (AIFM) directive on their marketing activities in Europe, have led to increased interest on the part of Asian hedge fund managers in so-called "Newcits" – UCITS (Undertakings for Collective Investment in Transferable Securities) funds which pursue hedge fund type strategies and invest in derivatives for speculative purposes as opposed for efficient portfolio management.
April 2011 | Mark Browne, Mason Hayes & Curran
Recent industry statistics show increased interest from alternative investment managers in basing their funds in onshore-regulated jurisdictions and as a result of this trend, Ireland recently overtook both Bermuda and the BVI as a domicile for hedge funds for the first time.
February 2011 | Mark Browne, Mason Hayes & Curran
The European Parliament adopted the Alternative Investment Fund Managers Directive (the 'Directive') on 11 November 2010. The Directive contains new rules on the marketing of alternative investment funds in the EU by both European and non-European managers. This paper considers the impact of the provisions of the Directive, the opportunities afforded by this new European 'passport' for alternative funds and sets out the timeline for implementation of the new framework.
December 2010 | Eurekahedge
The European hedge fund industry grew at a rapid pace in the first seven years of the last decade, with assets increasing 12-fold to reach US$464.30 billion at the end of 2007. Over the same period of time, the total number of hedge funds in the region increased six times to cross the 3,000 mark. However, as the global economy went into recession in 2008, European hedge funds went through their worst year on record, suffering heavy losses and witnessing unprecedented redemption pressure. This trend continued into the first few months of 2009, with industry assets reaching a trough of US$293.60 billion in March 2009, falling below the US$300 billion mark for the first time since 2005.
December 2010 | Simon Kerr, Simon Kerr's Hedge Fund Blog
Proposed short selling disclosure regulations announced recently by the European Commission (EC) are too stringent and threaten market efficiency in a general sense. Specifically, implementation of the regulations as currently drafted would be very damaging for larger hedge fund groups.
December 2010 | Noël Amenc, Felix Goltz and Lin Tang, EDHEC-Risk Institute
This document reviews the concept of green investing and reports the results of a European survey of investment management professionals. The objective is to provide background on industry and academic research into green investing and assess the views and uses of green investing.
July 2010 | Eurekahedge
While the European headlines in 2010 have been dominated by woeful tales of sovereign debt issues, the region’s hedge funds have been delivering their mandated results by providing superior downturn protection and outperforming the underlying markets. The Eurekahedge European Hedge Fund Index is up 0.25% June YTD while the MSCI Europe Index has lost 8.56% over the same time.
March 2010 | Zaki Abushal, HFMWeek
Driven by the prevailing threat of an AIFM regulatory clampdown, many European hedge funds are now looking westwards to access the rich institutional investor pickings in the US. But does the land of plenty have enough to go around?
Europeans could learn a lot from their counterparts in the US on how to run a hedge fund business. It is no surprise that the vast majority of the 8,000 hedge funds worldwide operate from the US and of those, most can be found in New York.
March 2010 | Tim Sharp, Pensions Insight
For a while, hedge fund managers were the guys taking the blame for the financial crisis as banks plummeted amid short-selling. Once their bets turned out to be astute, we turned our attention to the bankers who broke their own institutions.
But the spivs of Mayfair have not been forgotten in Brussels and the future of the hedge fund industry – at least in Europe – is at the mercy of European Union horse trading as politicians consider the directive on alternative investment fund managers.
February 2010 | Dermot SL Butler, Custom House
For a while, hedge fund managers were the guys taking the blame for the financial crisis as banks plummeted amid short-selling. Once their bets turned out to be astute, we turned our attention to the bankers who broke their own institutions.
But the spivs of Mayfair have not been forgotten in Brussels and the future of the hedge fund industry – at least in Europe – is at the mercy of European Union horse trading as politicians consider the directive on alternative investment fund managers.
October 2009 | Eurekahedge
After a very challenging 2008 and 1Q2009, the European hedge fund industry has witnessed a remarkable growth during the March to August 2009 period, bringing the size of the industry back to end-2008 level. European managers returned strong results of 3.34% in September, bringing the YTD performance to 19% in 2009. This is the strongest YTD September performance since 2000 (when the sector had returned 21% by the ninth month). The sector had grown at a swift pace since 2000, reaching its highest point in June 2008, with assets of US$472 billion, before shrinking rapidly in the face of heightened volatility across all asset classes and massive redemptions in the latter half of 2008 and in 1Q2009.
October 2009 | Grellan O'Kelly, Irish Financial Services Regulatory Authority
The term UCITS refers to the title “Undertakings for Collective Investment in Transferable Securities”. UCITS are retail funds authorised by one of the member states of the European Union (EU), and these funds have grown to become a hugely successful product, seen by investors and promoters as a “gold-standard” in terms of investor protection, regulation and disclosure. Latest figures from the Brussels-based European Fund and Asset Management Association (EFAMA) show that UCITS net assets under management as at end-March 2009 amounted to almost $6 trillion.
September 2009 | Christopher Miller, Allenbridge HedgeInfo
Let us be clear: we do not genuinely expect our brainstorming laid out here to be taken up any time soon. The wide-ranging nature of the proposals make them hard to implement quickly anyway. But more importantly, there are too many vested interests to bog them down, and we are too politically naive to have left much room for horse-trading.
August 2009 | Peter Douglas, AIMA
The Alternative Investment Management Association (AIMA) is the global hedge fund industry association representing, amongst others, the managers of more than 70% of the world’s hedge fund assets, and including fund of hedge funds managers, prime brokers, legal and accounting firms and fund administrators. On 27 July 2009, AIMA issued a warning that the European Commission’s draft directive on alternative investment fund managers would be damaging both to fund managers and investors globally, if enacted into European law. This warning also marked the first time that AIMA, which has 1,100 corporate members in 40 countries, has felt the need to coordinate a global press release. Why is AIMA so concerned?
April 2009 | Eurekahedge
After growing at a rapid pace for the past decade, the European hedge fund industry in 2008 shrank against a backdrop of heightened recessionary pressures and record levels of volatility across most asset classes. Based on the data of 2,3741 operational and 983 obsolete funds in the Eurekahedge European Hedge Fund Database2, we believe there are currently 2,291 funds investing in Europe, managing US$300 billion in assets. This marks an increase of 58% in the number of funds and 133% in terms of assets, since the end of 2003. Up until 2008, the marked difference in the growth rates suggests a sharp increase in the average size of hedge funds in the region over the years, owing to superior risk-adjusted return which led a strong inflow of capital into the industry.
October 2008 | Eurekahedge
The European hedge fund industry has grown at a rapid pace over the past decade, with an 11-fold increase in the number of funds and a handsome 60-fold increase in assets. Based on the information of 3,150 funds in the Eurekahedge European Hedge Fund Database, we estimate 2,361 operational hedge funds within the region’s hedge fund space, managing assets to the tune of US$445 billion. The following graph charts the growth of the industry over the past decade.
July 2008 | Deloitte LLP, National Venture Capital Association
While venture capitalists continue to view the US as the global leader in technology development and innovation, they also recognise specific pockets of technology innovation worldwide, according to a survey by Deloitte LLP and the National Venture Capital Association (NVCA).
June 2008 | Lisa Hayles and Stephanie Maier, Ethical Investment Research Services (EIRIS) Ltd
What was considered by some as a niche approach to investment is developing into a set of sophisticated, integrated and influential strategies adopted by a wide range of investors. The public's broader awareness of sustainable development issues, and the growing number of initiatives encouraging greater corporate transparency and accountability on CSR issues, have supported demand for the creation of new SRI investment products.
December 2007 | Eurekahedge
After two consecutive positive months amid rising risk appetites and rallying markets, hedge funds across the board gave back some of these gains in November, with the composite Eurekahedge Hedge Fund Index down 1.6%. A key factor in this market turn was re-emerging concerns over problems in the US housing and subprime markets, as it became apparent that the losses suffered by some of the large global financial firms were far greater than expected. This led to large-scale risk aversion among market participants.
December 2007 | Eurekahedge
Pharos Financial Group is one of the most experienced fund managers specialising in the securities markets of Russia and the former Soviet Union. With a 10-year history through up and down markets, Pharos has a proven record of superior absolute returns. Pharos' strength lies in its management unparalleled experience in the growth and development of Russian capital markets and the resulting insight into market events, opportunities and trends. Pharos principals have in-depth, personal knowledge of Russian companies, their history and management. Its management also has extensive Western capital markets experience and the technical expertise to handle complex opportunities involving derivatives and structured product.
September 2007 | Samuel Sender, EDHEC Risk and Asset Management Research Centre
Within the equity risk sub-module of the third Quantitative Impact Study (QIS3) undertaken by the Committee of European Insurance and Occupational Pension Supervisors (CEIOPS), a preamble to the Solvency II supervisory standard, all alternative investments are subject to a capital charge of 45%, nearly 50% higher than the 32% applied to regular equity exposures.
August 2007 | Eurekahedge
The 2007/2008 edition of the Eurekahedge European Hedge Fund Directory contains information on 2,176 Europe-centric funds, an investment space currently valued at US$448 billion. Contrasted with an industry size of US$20 billion at the end of 2000, this represents an impressive compounded annual growth rate of 62% over the past six-and-a-half years. We estimate industry assets to reach US$494 billion by end-2007, managed by nearly 2,200 funds. The following graph charts the growth of the industry over the past decade, together with forecasts for 2007.
April 2007 | BVCA
The BVCA represents the vast majority of UK-based private equity and venture capital firms and their advisors. The UK private equity industry is the largest and most dynamic in Europe accounting for more than half of the whole European market, and is second in size only to the United States on the world stage. This means the BVCA is today the single most authoritative voice of the UK industry when speaking with the media or negotiating with government, Parliament, European Commission and Parliament, regulators and other statutory bodies.
July 2006 | Rajeev Baddepudi, Eurekahedge
The Eurekahedge European Hedge Funds database currently contains information on close to 2,200 Europe-based hedge funds, an investment space currently valued at about US$350 billion. From humble beginnings at US$20 billion in the late 1990s, the industry has grown at a staggering annualised rate of 72% since end-2000. We estimate industry assets to reach US$390 billion in value by end-2006 – an increase of US$85 billion from the end-2005 figure. The following graph charts the growth of the industry over the past decade, together with forecasts for 2006.
June 2006 | Werner Goricki, Dirk Soehnholz, Marcus Storr, Vincent Weber, Feri Institutional Advisors
“Portable alpha” is a widely discussed concept in Europe as well as in Asia. However, successful implementation has been rare. We will discuss three basic concepts that can be applied to institutional portfolios or investment funds. Hedge funds are identified as the most attractive source of alpha. An alpha overlay (swap) is described as the most efficient way to import alpha into existing portfolios and investment funds. Such a swap can add significant additional return without adding a proportional amount of risk to the portfolio. Single hedge funds will be compared with funds of hedge funds and hedge fund indices regarding their suitability for alpha swaps.
December 2005 | Rajeev Baddepudi, Eurekahedge
October turned out to be a poor month for hedge funds across the board. In a marked departure from the positive to spectacular returns seen in the last five months, almost all the Eurekahedge regional indices took a southward turn. The exceptions were Japanese hedge funds (the Eurekahedge Japan Hedge Fund Index was up an impressive 1.7% for the month), and to a much lesser degree, onshore Latin American hedge funds (whose corresponding index was up 0.6% during the same period). The North American and European indices, on the other hand, registered negative returns of 1.3% and 1.8% respectively.
December 2005 | Rajeev Baddepudi, Eurekahedge
The number of European hedge funds has grown rapidly over the last ten years, and the European hedge fund industry has witnessed a healthy growth both in terms of assets under management and the number of funds. By the end of 2005, the total number of European hedge funds is expected to hit 1,650 with total assets amounting to about US$350 billion (approximately 30% of the global hedge fund industry), more than double that of 2003.
November 2005 | Eurekahedge
Gregory Smith has over 25 years' experience in the commodities markets as a fund manager, senior trader and founder/co-founder of two CTA funds, as well as the Enhanced Commodity Index (ECI) Fund for Asian and European investors.
September 2005 | Jesus Mardomingo, Jorge Canta Cuatrecasas
Act 35/2003 on Collective Investment Institutions ("Act 35/2003"), implementing UCITS III, introduced a new scenario for the Spanish collective investment institutions ("CII"). In order to develop this Act further, on October 13 2004, the Ministry of Finance published the first Draft Regulation on CII, which included one of the most eagerly-awaited developments: the regulation of hedge funds. However, it established requirements such as the calculation of daily NAV and the impossibility to invest in offshore hedge funds, which rendered the Spanish hedge funds market uncompetitive, since it was too restrictive.
August 2005 | Eurekahedge
Hedge fund performance across the globe perked up in June following a mediocre month in May. According to the Eurekahedge Hedge Fund Indices, the top three markets were Europe (+1.76%), Japan (+1.49%) and North America (+1.47%). Comparatively, Japan was down 0.17% in May and Europe was up 0.32% over the same period.
July 2005 | Eurekahedge
The comparison in the wealth creation chart demonstrates how well the European hedge fund markets have performed versus the local equity markets this year. The month of May continued with the good showing; the Eurekahedge European Hedge Fund Index was up 32 basis points as compared to the local equity index, which was down 17 basis points over the same period. Out of all the funds with a European mandate, around 70% of funds have netted positive returns till May 05.
February 2005 | Eurekahedge
Many European hedge funds have Boards of Directors ("the Board"). As pressures build to achieve more consistency and ultimately global standards in hedge fund valuation processes and structures, here are four areas which the Board needs to be addressing today:
November 2004 | Marie-Anne Kong and Didier Prime, PWC
How do hedge fund demand, regulation, structures and scale interact and fuel each other in Europe and Asia? Everywhere funds-of-hedge-funds are gaining momentum. In Europe there is emphasis on hedge funds (and funds-of-hedge-funds) domiciled domestically or in pan-European centres. Offshore domiciles are increasing regulation to compete. Asia has experienced dramatic activity in both hedge fund demand and supply, but lack of scale has been a frustration there and elsewhere. Differing regulatory requirements mitigate against scale, and more investor and distributor education is needed, but who will bear the cost of lobbying and education efforts?
August 2004 | Eurekahedge
The number of new European-based hedge funds grew rapidly over the past year, though growth now appears to be slowing slightly. Investment bankers, analysts and fund managers continue to leave salaried jobs at major banks to set up boutique firms where the initial income stream may not arrive until two or three years after launch.
July 2004 | Eurekahedge
Griffin tells more about the award-winning Griffin Eastern Europe Value Fund and the people behind the running of the fund.
June 2004 | Achim Pütz, SJ Berwin Knopf Tulloch Steininger, Munich
With a new German Investment Act and Investment Tax Act in force since 1 January 2004, a wide variety of new business opportunities have opened up in the German hedge fund sector for foreign players. In fact, the new legislation not only provides a sound legal framework for hedge funds in Germany, it also creates a more level playing field between domestic and foreign players in the asset management business. The focus of this article is on the distribution of foreign hedge funds in Germany. Of course, foreign sponsors can also set up a hedge fund in Germany. However, the benefits of doing so are not obvious since the new legislation aims notto discriminate against foreign funds.
March 2004 | Eurekahedge
Mike Clancy is the co-founder of Elgin Capital LLP. He has 15 years’ credit and derivative experience in New York and London, and was most recently global co-head of credit trading at Merril Lynch.
February 2004 | Eurekahedge
Mulvaney Capital Management is a London-based commodity trading advisor, regulated by the FSA in the UK and the CFTC in the US. The program is a long horizon systematic trend-capturing program allocating capital in all major sectors of the financial and commodity markets, explained by its Principal Paul Mulvaney, in an interview given to Eurekahedge.
January 2004 | Christopher Hilditch and Nick Fagge, Schulte Roth & Zabel International LLP
There has been tremendous growth in the European hedge fund arena over the last decade and the majority of indicators point towards continued rapid growth in this market. European managers have demonstrated the ability to raise significant amounts of money both in Europe and elsewhere, including the U.S. Although London is, and is likely to remain, the European "capital" for hedge fund managers, fund managers are now to be found throughout the continent in France, Germany, Italy and Scandinavia amongst others. Several European domiciles now provide a framework for "onshore" hedge fund vehicles and European regulators are now looking more closely at hedge funds and the regulatory issues to which they give rise.
September 2003 | Eurekahedge
The first edition of the Eurekahedge European Hedge Fund Directory contains information on more than 500 single manager hedge funds that conform to the arbitrary definition of either: The manager physically located in Europe (irrespective of geographic execution of strategy); Or the manager is physically located outside of Europe but the strategy is executed in Europe
June 2003 | Eurekahedge
"Transparency comes to Europe"
Eurekahedge are proud to announce the launch of our European Hedge Fund Directory.
Our European Hedge Fund Directory will incorporate all of the key features of our flagship Asian Hedge Fund Directory, including:
May 2003 | Dr Narayan Naik, London Business School's Centre for Hedge Fund Research
Dr Narayan Naik is Director of London Business School's Centre for Hedge Fund Research and Education. The Centre is intended to become the leading academic authority and focal point for new ideas on Hedge Funds in Europe. Specifically, it will focus on areas of research relevant to gaining a better understanding of the strategies employed by hedge funds.
November 2002 | Eurekahedge
Perhaps the most surprising thing about the nature of the hedge fund market in Europe is its lack of concentration. This is partly because it is made up of a variety of distinct buying groups (fund-of-funds, family offices, financial institutions, private banks, etc) and partly due to the sheer number of participants. In the long-only equity industry perhaps 90% of the money is managed by the top eight big global names. In the alternatives sector, we estimate that in London alone there are up to 200 individual organisations with an interest in Asia hedge funds. Geneva has a similar number of hedge fund investors; and then there are Zurich, Paris and the other capital cities of Europe.
April 2002 | John Hetherington, Eurekahedge
We asked 16 managers, based around the world and overseeing absolute return Asia Pacific strategies, their views of where is the best location to establish a hedge fund. We gave each of them the same 12 questions (reproduced below), which centered on the investment process and capital raising. Their answers were remarkably similar, suggesting that there may be a clear formula which new, and arguably some established, managers should follow.
