Hedge Funds Roar Back from Financial Crisis

Massive profit for Hedge funds

Massive profit for Hedge funds

In the aftermath of the financial crisis, Hedge funds have bounced back courtesy of a £79billion profit in just six months.

A data collection by LCH Investments has highlighted that the 10 leading hedge funds made $28billion alone for their customers during the second half of 2010.

The results from the collection have highlighted the bounce back by hedge funds following the financial crisis, with profits of $129 billion delivered to their clients in a short space of six months.

These figures show that hedge funds are in rude health compared to many industries who are still suffering from a hangover following the economic downturn.

According to the Financial Times, the data calculated by LCH investments, showed the $28billion in profits given to the customers of the 10 leading hedge funds is more than the combined net profits of; HSBC, Barclays, Morgan Stanley, JP Morgan and Citigroup over the same period of time.

The figures from LCH represent the amount of profit gained by hedge fund clients, from which the firms will pocket a 20% stake of the profits, and possibly a further 2% fee of management funds.

The news regarding the success of the hedge funds may worry some, as £79 billions is enough to fund Britain’s schools for a year, and the country’s defense budget.

The Robin Hood tax campaigners want to introduce a tax levy of of around 0.05% for financial transactions, which would see profits made by high-frequency, computer-based trading strategies cut considerably.

Leave your comment

  • (not published)