Business | Markets

Interest in hedge funds renewed as investors return to the market

Expert expects upward trend experienced last year to continue

  • By Jumana Al Tamimi, Associate Editor
  • Published: 00:00 February 17, 2010
  • Gulf News

Dubai: After signs of recovery in 2009, hedge funds are expected to continue growing in the current year, an expert at a regional asset management company said Tuesday.

Khalid Al Rumaihi, head of institutional investments in the Gulf at Investcorp, said the company, a prominent alternative investments manager with its headquarters in Manama, raised $1.3 billion (Dh4.77 billion) of fresh funds in 2009.

Investcorp manages more than $4.5 billion in hedge funds assets, Rumaihi told a group of journalists in Dubai yesterday during a seminar on hedge funds.

"From our conversations with investors, I would say investors started to feel more comfortable and more new money [is] expected in the current year," he said.

Renewed interest in hedge funds after the international financial crisis hit the global economy came as a result of several factors such as return of repatriated assets, as well as "the return of some of the investors to the market after a period of concern," Rumaihi said.

According to him some US institutions played a key role in the return of investments to the hedge funds industry.

Gulf News
Business Editor's choice

More from Popular in Economy

Quick Access

  1. Markets

  2. Economy

  3. Property

  4. Aviation

Business Top Stories

  1. Majid Al Futtaim first-half revenues up 14%

  2. iPhone, Mac add to Apple profit

  3. Microsoft CEO sees ‘bold’ plan

  4. Fraud threatens digital advertising landscape

  5. Australia following the wrong US model