International Herald Tribune – European hedge- fund managers are starting more funds and raising more money than ever before, getting past the troubles of early 2005, according to EuroHedge magazine.<\/p>\n
European fund managers started a record 330 new funds in 2005, almost a third more than the 250 new funds started in 2004, the magazine, based in London, said Thursday. Assets raised in the new funds increased 22 percent, to $27.8 billion, from $22.8 billion.<\/p>\n
The record represents a rebound for the industry, which stumbled in the first half of 2005 after credit-rating downgrades at automakers like General Motors and Ford hurt fund performance.<\/p>\n
Returns improved in the second half, which helped the funds climb an average of 9.2 percent in 2005, double the gain of the Standard & Poor’s 500 stock index, according to data compiled by Hedge Fund Research.<\/p>\n
Hedge funds are aimed at investors with at least $1 million to invest, and take larger bets than traditional funds. The industry worldwide has about $1 trillion in assets. <\/p>\n
Morningstar revenue rises but shares fall<\/p>\n