David Beattie

08/02/2012 Author: David Beattie

Editor's view: 8 February 2012

Speculative moves, a perceived landgrab and a potential bidding war in the hedge fund sector have all opened up in recent weeks and may well herald the beginning of a recovery after the well-documented disappointments in 2011.

This first quarter, if replicated, would show the industry has picked itself up and dusted itself down, and the winners are likely to be those at the coalface – with London finding renewed favour.

Earlier this year, we saw US macro hedge fund manager Graham Capital announce plans to boost its presence in the UK capital by up to 25 people, while late last week US law firm Akim Gump scooped up two key hedge fund partners from industry major Simmons & Simmons, citing enormous opportunities for its clients in the UK and international markets.

Then there was TPG’s bid for GlobeOp, followed closely by declared interest from SS&C. The latter, albeit without an offer, was welcomed by shareholders and helped bump up the London-listed firm’s share price.

So what can we deduce? I, for one, would wager that the shackles are loosening and where previously hesitancy endured, it is gradually being replaced by returning optimism and the willingness to take the risks that have historically set our industry apart from most others. But performance remains key and only a keen focus on, and subsequent delivery of, solid returns will suffice if the current momentum is to be sustained.

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