Hedge funds leaving the EU?

The Sunday Times reported that a group of London’s largest hedge funds, which between them manage £120 billion of assets, led by industry body the Alternative Investment Management Association (Aima), will this week meet to discuss the EU’s draft directive aimed at curbing the activities of hedge funds and private equity.

Man Group, Brevan Howard, BlackRock, Marshall Wace, Lansdowne, CQS, DE Shaw Group, Fauchier and the Hedge Fund Standards Board (HFSB) will all be present, the article reports.

Brevan Howard, Europe’s largest hedge fund with £14 billion of assets under management, said it would be forced to leave Britain if the directive was not changed. James Vernon, one of the firm’s founding partners and chief operating officer, said: “The directive envisages setting leverage [borrowing] limits and that wouldn’t just make it difficult for us to run our business, it would make it impossible. We are actively looking at non-EU locations. Singapore, Hong Kong, New York and the Middle East are all possibilities.”

Jean Viry-Babel
senior partner
VBK partners

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