Dividends play a crucial role

Hedge fund managers who have not kept a check on dividend levels, have missed large portions of markets' total returns

Dividends are playing an increasingly important part in hedge fund performance as well as forming an integral part of the investment process, according to many single strategy hedge fund managers.

The growing role of dividend payouts by listed firms is hardly surprising given the recent performance of Europe's and the UK's stock market performance over the past two years.

European yields remain stable

While the markets have fallen and fluctuated the dividend yields from Europe's main markets have