Hedge-fund assets have soared over the past year, even as returns have disappointed.
Hedge funds registered with U.S. regulators managed $8.9 trillion at the end of May, the Securities and Exchange Commission said. That amounts to a 22% increase—or $1.6 trillion—from just a year earlier.
Private-equity firms grew even more, with assets rising 23% to $7.4 trillion.
The largest hedge funds accounted for slightly less than half of the growth, as those with at least $500 million now run $4 trillion, compared to about $3.3 trillion in May 2013. All told, 460 firms reported on 1,326 hedge funds to the SEC, it said.