GERMANY, (HEDGECO.NET) – HVB Group, the second-biggest bank in Germany, has announced that it will begin marketing hedge funds in Germany by the end of 2004. These plans will enable HBV to competewith other rivals for the German hedge fund market. Deutsche Bank, Commerzbank, and Dresdner Bank have already begun marketing hedge funds in Germany following the lifting of retail hedge fundprohibitions by the German regulators.
Last year, HBV said it has entered into a strategic partnership with the New York based hedge fund manager, Ramius Capital Group to market hedge funds to retail investors. The joint venture, called Ramius HVB Partners, started managing assets for investors and according to published reports the firm now oversees over US$4 billion for investors worldwide.
Although the German hedge fund market is slow in catching up, market analysts predict that the coming years will see a more robust growth in the German hedge fund sector. Many investors in Germany are not quite convinced yet about investing in hedge fund managers. James Dilworth, head of Goldman’s fund investment management division in Germany said, �It is clear investors want to get away from market risk�. Goldman Sachs said about 30% of its first quarter asset inflows in Germany went into hedge funds, compared to about 2% prior to the introduction of the new hedge fund laws for retail investors.
Meanwhile, other competitors for the German hedge fund market continue to expand their services and products aimed at the German retail investor market. Commerzbank recently announced it is expanding its German hedge fund operations by investing with other groups of hedge funds run by Harcourt Investment Consulting based in Zurich, and the New York based PlusFunds Group.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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