London-based hedge funds’ market share of the $1.5 trillion worth of assets under management by hedge funds worldwide has doubled in the last five years, according to recent research.
Figures from International Financial Services (ISFL) showed that London hedge funds now manage 21 percent of assets under the control of hedge funds – up from just 10 percent in 2002.
Hedge fund assets in London grew to $360 billion during that period.
The survey also revealed that New York hedge funds have seen their share of the sector dip from 45 percent in 2002 to 26 percent in 2006.
According to the compilers of the survey, London owes its growth to a number of factors including “local expertise, the proximity of clients and markets, a strong asset-management industry and a favorable regulatory environment.”
Earlier this year, a report commissioned by Michael Bloomberg, mayor of New York, called for greater regulatory changes to enable New York to more ably compete with foreign bourses.