4HF conference

The 4th Hedge Fund Conference organised by Borsa Italiana took place today in Milan. Borsa Italiana Group, which has helped facilitate the rapid development of the hedge fund industry in Italy, was pleased to host a one-day session that featured some of the main players of international finance and the global hedge fund industry.

"Our Hedge Fund Conference is considered a benchmark for the European industry" said Raffaele Jerusalmi, Executive Director, Markets at Borsa Italiana. "It was a great honour to host Michael Steinhardt, a true Wall Street legend and one of the most successful money managers ever. The growing number of participants is very satisfying and I believe reflects the industry's stamp of approval for the event's growing reputation for generating open, frank and independent debate."

Three years after the launch of the first fund of fund authorised by Banca d'Italia, the growth of the hedge fund industry in Italy has been rapid, especially in the funds of funds area.

The industry has seen managed funds in Italy soar from €2.2 billion in 2002 to €6.2 billion last year, an increase of 180%. Assets under management swelled further to reach €8.5 billion as at the end of the first quarter of 2004, representing growth of 35% since 31 December 2003.

Presently, 26 investment management companies are authorised by Banca d'Italia to manage speculative assets through a total 87 funds, of which 79 are funds of funds and eight single-manager hedge funds. Single-manager hedge funds in Italy manage assets amounting to €347 million.*

At the end of December 2003, $125 billion was managed by pure hedge funds at a European level whereas $815 billion was managed at a global level. With regard to funds of funds, they run $105 billion in Europe and $210 billion globally.**

As from 2000, Borsa Italiana has dedicated a team to hedge fund clients, among the most important players of its markets. The main aims of the team are to promote Italian-listed companies and to enhance the quality of the Italian markets.

The team has built up relationship with more than 100 US hedge funds (62 of which invest in Italy and seven of which count at least one Italian manager), over 90 in the UK (72 of which operate in Italy and 25 of which count at least one Italian manager), 20 in Switzerland (19 of which operate in Italy), eight in France (six of which operate in Italy) and a number in the rest of Europe.

Milan, 20 May 2004