Alternative Market Briefing

Snippets from the Terrapinn Hedge Funds World Conference in Hong Kong: Citco: $2.5 trln hedge fund assets by 2010, Dubai International Financial Center expects up to 20 hedge fund listings this year, Teamwork wins over All Star Approach in Portfolio Construction

Tuesday, September 12, 2006

Matthias Knab reports “live” from Hong Kong: Citco: $2.5 trln hedge fund assets by 2010 Currently, the firm taxes the industry at $1.3trln, with an additional $400 to $500 bln in FoFs. By 2010, the industry will have reached $2.5 trillion (before leverage), according to Citco estimates. In 2005 one out of three institutional investors are invested in hedge funds. In the hedge fund administration world, fax, courier and post still accounts for most communication – the challenge for more automation remains.

Dubai International Financial Center expects up to 20 hedge fund listings this year Kevin Birkett explained that his target region actually includes 42 countries spanning the Middle East, North & Eastern Africa, Levante and Indian Subcontinent, 2.1 bln people with a $1.8 trln combined GDP. HNW individuals own $1.6 trln, with regional wealth invested abroad $1.8 trln. The Middle East is home to some of the largest institutional investors:

Abu Dhabi Investment Authority (ADIA) $250 - $300bln
Saudi Arabian Monetary Agency (SAMA) $150bln
Kuwait Investment Authority (KIA) $130bln

The Dubai International Financial Center (DIFC) is a “financial free zone” allowing 100% foreign ownership, freedom to repatriate capital and profit, 0% tax rate with a renewable 50-year tax holiday. From a regulatory standpoint, Dubai’s independent regulatory agency DFSA has become a full IOSCO member.

The recent launch of the first Dubai......................

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