Preqin: 16% of funds launched in Q2 target Europe, up from 1% in Q1

Preqin's Q2 update on the hedge fund industry finds that economic uncertainty following the UK vote to leave the EU has created potential opportunities for hedge fund managers and, as a result, many more funds have launched focused on the region. Europefocused hedge funds saw a large increase in the proportion of overall fund launches, rising from 1% of funds launched in Q1 to 16% of those incepted in Q2. At the same time, UCITS-compliant funds accounted for 18% of overall fund inceptions through Q2, the highest quarterly proportion tracked by the research firm since the directive came into force.

Given that UCITS funds are a key way for non-European firms to raise capital from Europe-based investors, it is a further sign of the growing interest that industry participants are taking in the region.

"The run-up to and aftermath of the UK's decision to leave the EU caused volatility across several markets within Europe and beyond," commented Amy Bensted, head of hedge fund products at Preqin. "Hedge fund managers have seen increased opportunities to capitalise on this turbulence, and more Europe-focused hedge funds have been launched by managers both in and outside the region. Although Europe-focused funds did not make the same gains as North America or Asia-Pacific-focused in Q2, the ongoing volatility arising out of the uncertainty within Europe may provide opportunities for hedge funds focusing on the region to deliver some upside gains.

Source

Source Preqin

Citigroup Inc. mortgage trader Anna Raytcheva, a Bulgarian national who joined the Citibank......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.