HFR: Hedge Fund Industry Now At $1.57 Trillion

Apr 20 2007 | 1:09pm ET

The hedge fund industry saw record inflows of more than $60 billion during the first quarter of 2007, bringing total assets under management to $1.568 trillion, according to data released this week by Hedge Fund Research. These new inflows were equal to nearly half the record $126 billion in new assets gathered by hedge funds in all of last year.

Equity hedge and relative value arbitrage strategies proved most popular among investors, together having accounted for more than half of all inflows. Every major strategy tracked by HFR recorded a positive flow for the quarter, and funds of funds saw net new flows of $8 billion in the first quarter, marking the fifth straight quarter of positive inflows for that category.

“After a relatively quiet end to what was still a record-breaking year in 2006, investors have begun pouring money into hedge funds at a pace we have never seen before,” stated Ken Heinz, president of HFR. “The trend in asset flow suggests that both individual and institutional investors are actively allocating to hedge funds, while the performance indicates hedge funds are exceeding these investors’ expectations.”

The HFRI Fund Weighted Composite Index returned 2.81% in the first quarter, with emerging markets leading the pack up 5.06% followed by merger arbitrage (+4.83%), as the top performing strategies. The S&P 500 returned 0.64%, while the MSCI World returned 2.06% during the same period.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...