Hedge Funds closed 2007 with over $2.7 Trillion in total assets under management. In 2007 alone hedge fund assets have risen $500B. $50B of that $337B came from emerging market hedge funds growth with most of those assets being allocated to Chinese and Brazilian hedge fund managers.

These types of statistics are important to keep in mind, for if in 12 months hedge funds gained $500B, then on average hedge funds raised over $42B per month. So when you read an article about a hedge fund blowing up and losing $2B it is a horrible stituation for that hedge fund manager and their investors, keep in mind that industry wide it is merely a speck on the radar and the former level of hedge fund industry assets are gained back in less than 2 days.

Richard Wilson is a hedge fund consultant, founder of the Hedge Fund Group (HFG) and runs the Hedge Fund Consultants Blog.