London and New York will remain the leading centers for global hedge funds

London remains the dominant global hub for hedge funds, with regulatory filings from leading investment firms confirming its superiority in investment professional headcount. Despite challenges from Dubai and Singapore, London continues to outpace emerging financial centers in the hedge fund space.

While Brexit and political uncertainties sparked speculation about London’s future, major European cities such as Paris, Copenhagen, and Milan have yet to emerge as viable alternatives. Even Dubai, with its tax advantages and sovereign wealth capital, has not significantly impacted London’s hedge fund headcount.

Recent data further cements London’s leadership in financial services investment. In 2023, the UK secured 108 financial services foreign direct investment (FDI) projects, up from 76 in 2022, capturing 33% of all such projects in Europe. London itself attracted 81 financial services FDI projects, a 76% increase from the previous year, more than doubling Paris, which secured 31 projects in the same period.

In Asia, Singapore was expected to overtake Hong Kong due to geopolitical tensions, yet Hong Kong still houses more investment professionals at top firms. However, Singapore has become the preferred choice for some firms, including Verition and the newly launched Jain Global.

Dubai and Singapore continue to grow as hedge fund hubs, benefiting from regulatory incentives and a rising talent pool. Still, industry insiders believe London and New York will remain the leading centers for global hedge funds.

On a national level, the UK ranked second globally in financial and professional services investment, securing 186 projects worth £1.1 billion, behind only the United States (234 projects). Even during the pandemic, the UK saw an 8% increase in financial services projects, demonstrating its resilience and ongoing appeal.

Catherine McGuinness, policy chair at the City of London, emphasized the need to future-proof the financial sector, ensuring global competitiveness. Vincent Keaveny, Lord Mayor of London, highlighted the city's time zone advantage, strong legal framework, and deep talent pool as key drivers of sustained growth.

London’s established financial infrastructure, regulatory stability, and access to top-tier talent continue to attract major global players.

Ref: Business Insider. (2025, January 28). London still dominates as the biggest hedge funds' international outpost despite hot spots like Dubai entering the scene. Department for Business and Trade. (2024, June 27). DBT inward investment results 2023 to 2024. GOV.UK.