Reuters – Fundraising by new European hedge funds may be picking up, according to an industry survey, after hitting a record low in a first half of the year overshadowed by the Madoff scandal.

The survey, released on Monday by data group EuroHedge, shows $2.09 billion (1.26 billion pounds) was raised in new funds in the first six months of 2009, the lowest in the poll’s 10-year history, while 47 new funds were launched.

A year ago 106 funds were launched, raising $10.8 billion, including $2.5 billion raised by the Brevan Howard Multi-Strategy fund.

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CNN Money – Money managers must offer new portfolios and keep cutting costs to survive in an era where frightened investors prefer safer fixed-income funds to stock and hedge funds, a report released Monday showed.

Badly bruised by last year’s financial crisis when tumbling markets and investor redemptions shrank global assets 18 percent to $48.6 trillion, asset managers face more tough times in 2009 and the years ahead, The Boston Consulting Group wrote in its seventh annual asset management industry survey.

Profits will shrivel again, likely falling to 30 percent or less this year from 34 percent at the end of 2008 and 38 percent at the end of 2007, the consultants forecast.

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