UK's largest hedge funds manage 82% of assets
Financial Conduct Authority tells hedge fund giants to show integrity
Monday 24 March 2014
Hedge funds manage $470 billion (£285 billion) in the UK, with 82 per cent of the assets controlled by just 20 large firms, the City regulator revealed today.
London is home to some of the world’s best-known hedge funds, including Lansdowne Partners, Odey Asset Management, Winton Capital Management and The Children’s Investment Fund, which emerged as the largest investor in Royal Mail after its stock market flotation last year.
According to the Financial Conduct Authority, the sector is now the third most popular type of alternative investment after real estate and private equity.
The UK’s share of the global market has increased steadily over the past decade with institutional shareholders now the most dominant stakeholders.
With this in mind, Clive Adamson, director of supervision at the FCA, said the regulator would keep tabs on an industry that was partly blamed for the turmoil that followed the 2008 collapse of Lehman Brothers.
“This illustrates how important this $2.6 trillion industry is to the UK. With nearly 20 per cent of all global assets under management here, it is important that people have trust in how we regulate this market,” he said.
“As we move forward as the FCA, the challenge from us to the industry is to ensure that it operates to the highest standards of integrity so that London can maintain its position in this important global market.”
The news was not all good for the UK: a survey of 49 out of Britain’s 450 hedge funds found that a majority are domiciled overseas. The Cayman Islands was the most popular destination followed by Ireland, the United States and the British Virgin Islands.
According to the FCA, hedge fund managers have also increased their leverage. The amount of debt being held by firms regulated in the UK now stands at about 64 times assets.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
Isis executes three gay men by dangling them from top of 100ft building and letting go
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...