On the New York Stock Exchange, hedge funds account for more than half of its daily volume and have an equal affect on the global financial market. This growing industry comprises an estimated $1 trillion in Assets Under Management (AUM) in over 8,000 funds. Analysts currently predict that the AUM will expand to $2 trillion by 2009. Hedge funds have doubled from five years ago and returns have averaged 13% since then, their best performance since 2003. Wall Street firms collected $8 billion in fees last year lending cash and securities to hedge funds. Companies like Bear Stearns generate at least 30% of their profit from hedge fund business.
