London to maintain hedgie lead

London will retain its position as Europe's hedge fund capital due to its leading position on investor protection and regulation,  due diligence specialist Sigma Partnership said yesterday. The group also said fear of an exodus of fund managers from the UK due to the tax burden was exaggerated, and that there is a reluctance from the institutional investor community in seeing talented managers moving away from London. The City will be protected by its international reach and critical mass across all financial services sectors and products, it said.