Foreign wealth pours into London's hedge funds

Foreign sovereign wealth investors are targeting London's hedge fund industry as they seek to boost returns on their vast savings, much of it generated from trade with the west in oil and other commodities, according to the annual Hedge Fund Assets Under Administration survey by Hedge Fund Manager Week.

The hedge funds have seen billions of pounds pour into their investment plans at a time when the industry desperately needs cash to replace debt funding that collapsed during the credit crunch.

According to the survey, the rapidly expanding group known as funds of funds are the main beneficiary of investments from sovereign wealth funds. Assets in funds of funds, which spread their investments across a range of individual projects, have grown 10% in the last six months to £700bn.

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