New Money Streams Into Hedge Funds, Industry Up To $1.225 Trillion

Jul 21 2006 | 5:42pm ET

New money poured into hedge funds at a dizzying pace during the second quarter, according to Hedge Fund Research. The funds raked in $42.1 billion in new investments during the quarter, bringing total assets in the industry to a whopping $1.225 trillion. HFR reported that investors were lured into hedge funds by their strong performance in Q1. The inflows are the largest on record for any quarter since HFR began tracking them in 2003.

Equity managers were the biggest asset gatherers, pulling in more than $13 billion in new money during the quarter. Global macro managers came in second in terms of new money, seeing inflows of $8.4 billion, while event-driven strategies lured $4.8 billion, according to the Chicago-based research firm. Meanwhile, fixed-income arbitrage strategies saw the biggest outflows, losing $164 million in assets for the quarter.

Funds-of-hedge funds also saw new money streaming their way. The funds pulled in $15.6 billion, while during Q1 they attracted less than half of that ($6.4 billion).


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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