European hedge fund managers increased assets under management by 25% in the first six months of this year but fundraising has recently slowed as a result of lacklustre performance.

A survey of Europe's hedge fund managers showed assets increased from $168bn (€136.7bn) at the start of 2004 to $216bn at the end of June, an increase of more than 25%. The increase since the end of June 2003 is more than 70%. Part of the rise has come from investment gains but most of it is from investors throwing money into the asset class.