Germany beckons

country analysis

At the beginning of 2004, Germany enacted a new investment fund regime allowing for the first time the setting-up and marketing of hedge funds including funds of hedge funds to German private and institutional investors.

Market sources say eight hedge funds and funds of hedge funds (FoHFs) were licensed with Germany's Financial Services Supervisory Authority (BaFin) in the first half of 2004, and total investor inflows reached about €500m.

A further increase of German investor demand for hedge