Europe-based funds of hedge funds continue to dominate the global industry's asset gathering, according to a recent ranking by Alpha magazine.

The research found that the top 50 managers of funds of hedge funds collectively control $550 billion, nearly half of the world's estimated $1.3 of hedge fund assets, a 21 per cent increase from June 2005.

London-listed Man Investments tops the list with $39.8 billion in funds of hedge funds at 30 June, with UBS coming in at number two, with $37.8 billion, losing its previous top position after selling its $18 billion GAM funds of funds business to Julius Baer Group in December 2005.

Number-three was Switzerland's Union Bancaire Privee, which gained more than 44 per cent in assets under management during the year.

New York-based Permal Asset Management, part of Legg Mason was fourth with $26 billion, a gain of more than 38 per cent in assets from the 2005 period.

HSBC was fourth largest, according to Alpha, with $25.5 billion in multi-manager hedge funds at its private banking and HSBC Republic Investments units, representing a year-on-year gain of nearly 25 per cent.

The next four largest funds of hedge funds businesses named by Alpha are all part of European banks; Societe Generale, Credit Suisse, Julius Baer Group and Credit Agricole.