Poor start to the year for City hedge funds
Returns from UK hedge funds were just 0.6% in the first four months of 2014
Friday 23 May 2014
London's hedge funds made a poor start to 2014 and will face further pressure once controversial new rules from Brussels are introduced later this year, experts warned today.
Returns from UK hedge funds were just 0.56 per cent in the first four months of 2014, according to data seen by The Independent's sister paper, the London Evening Standard, compared with 5.19 per cent over the 12 months to the end of April.
Market volatility and political uncertainty in areas like Ukraine have hit the sector, making it the worst start to a year since 2008 when the world of finance went into freefall following the collapse of Lehman Brothers.
US hedge funds have fared much better, figures from data specialist Preqin show, returning 2.14 per cent in the first third of this year and 11.33 per cent over the 12 months.
The results come ahead of Europe’s alternative Investment Fund Managers Directive, which is aimed at improving transparency.
However, critics say it has cost millions in red tape and also places unfair restrictions on hedge fund managers’ pay.
“This is not a good time for them to perform badly with the burden of regulation continuing to grow and costs of doing business increasing,” said Dan Roman, head of UK hedge funds at KPMG. “If performances continue to suffer, then there is likely to be pressure on fees and inflows of institutional money could even slow down.”
However, assets held by UK hedge fund bosses grew about $57 billion (£34 billion) between January 2013 and April 2014, Preqin said.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 5 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...