Top hedgies run 40pc of market

Michael Bow
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EUROPE’S five biggest hedge funds boosted their market share of managed assets to 40 per cent last year, further concentrating investor assets into a handful of hedge fund managers.

The assets of this year’s top five managers – Man Investments, Brevan Howard, BlueCrest Capital Management, Winton Capital Management and Standard Life Investments – increased to $165bn (£104.4bn) at the end of June 2012, according to figures released yesterday.

This equates to 40 per cent of total hedge fund assets of those surveyed and an increase on the market share of 38 per cent posted last year.

The total assets managed by the top five is a 53 per cent increase on the $108bn of assets managed by the then-top five when the annual survey was conducted in 2010.

The survey found total assets under management had increased seven per cent from mid-2011 to hit $414bn this year.

The study by The Hedge Fund Journal, now in its seventh year, surveyed 50 hedge funds across Europe.

Topping the table again this year was Man Investments, which has been beset by a spate of downgrades by equity analysts and rating agency Moody’s of its parent Man Group over the past two weeks.

It increased its assets by 21 per cent from $34.1bn to $41.4bn at the end of June.

British hedge fund Brevan Howard took second place after increasing its assets by 14 per cent, while BlueCrest Capital Management and Winton Capital Management both went up a spot to three and four respectively.

The biggest riser in the top ten was Standard Life Investments, leaping from ninth to fifth after growth in its Global Absolute Return Strategies (GARS) fund.

The data also showed UCITS funds now account for 18 per cent of total assets under management of the funds surveyed, equal to $71.6bn.