MSNBC- The global hedge fund market grew by about a fifth to almost $2,500 billion (£1,250 billion) in the first half of this year.
Assets under management in global hedge funds reached $2.48 trillion in July, according to research out today from HedgeFund Intelligence, an increase of 19 per cent since the beginning of the year.
There have been record investment levels into hedge funds over the last few years, accelerating as large institutional investors such as pension funds replace the wealthy individuals who had underpinned the industry.
However, with credit funds among the hardest hit by the US subprime housing crisis this summer, it is not known what impact this may have on levels of investment.
“While these figures are only to July, and don’t yet take account of the turbulence the industry endured in August,” said Neil Wilson, managing director of Hedge Fund Intelligence, “they indicate an industry still in robust health”.
Hedge funds delivered a performance of more than 6 per cent in the first half, leaving almost two-thirds of the growth in assets from net inflows of money from investors.
The survey of more than 5,000 single-manager hedge funds showed about half of assets were still allocated via funds of funds.
