Chicago Tribune – Hedge-fund managers attracted $45.2 billion in the third quarter, a decline from record fundraising earlier in the year as subprime-mortgage losses hurt investment returns.
New money gathered from investors worldwide fell by more than a fifth, from $60 billion and $58.7 billion in the first and second quarters, respectively, Chicago-based Hedge Fund Research Inc. said Tuesday.
Deposits were the lowest since the final three months of 2006, when managers pulled in $15.8 billion. Returns averaged 1.36 percent in the third quarter, the smallest gain in a year, Hedge Fund Research said.
Nevertheless, year-to-date inflows surpassed the $126 billion record for all of 2006, led by allocations to funds of funds, which farm out clients’ money to outside managers. U.S. mutual funds, which control $11.5 trillion, gathered $990 million during July and August, according to data compiled by the Investment Company Institute.
