An Australian hedge fund manager has raved about the potential for accountancy software company Xero.

With chief executive Rod Drury "bouncing around over the world", accounting software firm Xero is hunting for a New Zealand managing director to handle local operations.

A Facebook billionaire, an investment company tied to a charitable trust working with Australian Aboriginal communities, and TradeMe founder Sam Morgan are among the largest holders of Xero shares which have soared more than 500 per cent in the past year.

It was worth $3 billion just three weeks ago, now online accounting software provider Xero has passed the $4 billion mark.

Xero's value has breezed past that of Mighty River Power this week and shares in the software company made gains for the fifth day in a row.

It's been a big week for Rod Drury. Since Monday, shares in his online accounting software firm Xero have soared in value by about 30 per cent, hitting $25.20 yesterday.

New Zealand shares rose on the first trading day of 2013, following gains on Wall Street, as investors drove up companies that have featured on broker lists for 2013, such as PGG Wrightson and Ryman Healthcare.

Rod Drury is the NZ Herald's Business Leader of the Year

New Zealand has developed a code of practice to help regulate the rapidly-growing Cloud Computing industry, making it one of the first countries to do so.