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).


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note