Funds at BlueBay Asset Management rose to almost $20bn (€15.4bn) in the first quarter of the year spurred by strong growth in its long-only investments, which helped to offset falls in the value of its hedge funds and highlighted the benefit of diversifying strategies amid jittery market conditions.

Assets under management at the London-listed group rose 7.2% in the first three months of the year to $18bn. The rise came despite a 13.5% drop in the value of its hedge funds, which fell to $3.2bn, according to its first quarter results released today.