US remains centre of hedge funds industry

How to set up a hedge fund -- Supplement, December 2010

usa-introduction

It is commonly said hedge funds were created in the 1940s when Alfred Winslow Jones combined a leveraged long stock position with a portfolio of short stock positions in an investment fund.

This strategy outperformed the returns of mutual funds and led to an increased popularity of hedge funds in the 1960s. Since then the US has been at the centre of the industry, accounting for around 65% of all hedge fund assets under ­management (AUM).

Until recently hedge funds in the US were unencumbered by