The Squadra Azzura won the World Cup last month after a shaky start and by steadily improving their performance. It’s a stark contrast to the development of the Italian hedge fund industry. Italy rode the wave of hedge fund expansion by introducing regulation as early as 1999. As a result, growth has been strong. Italian funds now manage €18.3 billion, more than 5% of total hedge fund assets invested in Europe.
But there is cause for concern. As a survey published in July by the Alternative Investment Management Association and law firm Simmons & Simmons points out, pure hedge funds manage only 3%...
