(Bloomberg) You may have read a bit of negative news 1 recently about hedge funds: high fees, subpar performance and concerns about legal issues. That might be the sort of unholy trinity that would put off some potential investors. Combine that with the rise of index investing, and you have a recipe for inevitable industry decline, right? Not so fast.
Despite the gloomy backdrop, hedge-fund assets under management have hit a new record. According to Hedge Fund Research 2 the latest data show that assets increased to $3.07 trillion in the first quarter, surpassing the previous record of $3.02 trillion in the prior quarter.
