WEST PALM BEACH, FL (HEDGECO.NET) – Hedge funds gained $22 billion in new assets during the first quarter of 2004, according to new data released by the Chicago based Hedge Fund research, Inc [HFR].According to the new data, �For the first quarter 2004, the hedge fund industry attracted $22.2 billion in net new assets, compared to $6 billion in negative asset flow for the first quarter of 2003.With this strong start, 2004 is on pace to surpass the $75 billion in net new flows attracted by the industry in 200.�
HFR calculates that the hedge fund industry returned an average of 3.6% to investors during the first quarter of 2004. Such a performance comes amidst poor results posted by equity markets. The Dow Jones Industrials lost 0.9% while the S&P made a gain of 1.3% during the same period.
With the positive returns posted by hedge funds at the end of 4th quarter, 2004, its overall industry assets now stands at $864.7 billion up from $817 billion recorded at the end of 2003, according to HFR data.
Commenting on the new data, Joshua Rosenberg, president of HFR, said, �Given the weak start last year, there may have been some question as to whether or not the industry could sustain its momentum. Clearly, the reversal in fund flows we saw in the first quarter of 2003 was not repeated. The data suggests that investors increasingly perceive alternative investments as an asset class that can produce steady returns in any market environment.�
Details of the released hedge fund performance data shows that fund of hedge funds gained 3.2% for the quarter, equity hedge category gained 3.4%, global macro strategy saw an increase of 3.9%, while emerging markets strategy had an impressive gain of 9.4% during the same period.
HFR Group LLC, was formed in 1993; it is one of the global leaders in hedge fund data, research, indexation and asset management. The HFR Group companies include Hedge Fund Research, Inc., and HFR Asset Management L.L.C. Hedge Fund Research produces HFR Database, a reliable source of hedge fund performance data and information.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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