An increasing number of hedge funds managers are being attracted to Israel which is fast emerging as a tech center, despite the fact that the country faces potential threat of missile attack from Iran.

While there are concerns galore about Iran's threats to obliterate Israel, the country still boasts the world's highest number of Ph. D. s and hi-tech start-up firms per capita. In a way, Israel apparently is on track to replicate the growth witnessed by the Singapore industry during the period from between 2001 and 2009.

Going by the findings of a July-published survey of the local industry published by Tzur Management, the number of hedge funds in Israel has increased from merely 13 in 2006 to 60, which are overseeing approximately $2 billion.

Israeli fund manager Tal Keinan, CEO of Tel Aviv-based KCPS & Company, said during an October meet with investors that it is the "concentration of talent" in Israel which is drawing hedge fund managers to the country. Keinan further added that the people who propelled the tech industry in Israel are now in a position to develop quantitative models for hedge funds.

With Dan Senor and Saul Singer dubbing Israel as a "Start-Up Nation" in their 2009-released book, Sphera's hedge fund manager Ori Hershkovitz said during a December 19 telephonic statement from Tel Aviv: "We (Israel) have the advantage of small size in a place with a strong base of key global opinion leaders and Ph. D. professionals and it is very easy for us to stay ahead of the curve."