Hedge Fund Sector 'Set To Grow 15% Over The Coming Decade'

by Phillip Morton, Investors Offshore.com

01 March 2004

Explosive growth in the global hedge fund industry is set to continue over the next decade, and by 2010 there are likely to be in the region of 25,000 funds, according to Man Investment’s Dr Christoph Moller.

“We would expect total assets under management to grow by over 15% over the next 10 years, resulting in a six-fold increase in market size,” forecast Moller, Managing Director for Global Sales and Marketing at Man, whilst addressing the Hedge Funds World Middle East conference in Dubai.

Conference Chairman Antoine Massad, Head of Middle East & Asia at Man Investments also shared Dr Moller’s optimistic outlook. “We are seeing increased demand from institutions and new markets are opening all the time,” he said, pointing to Germany’s recent decision to open up its hedge fund market, and Japan’s state employee pension fund’s request to invest in hedge fund products.

He also identified the Middle East as a “key player” in Man’s global strategy. Recent estimates have highlighted the vast untapped potential of this region’s market, where it is said only a small portion of some US$2 trillion of investable net worth has been invested in alternative investment products.

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