Hedge Fund Investment Flows on the Upswing


Hedge funds are recouping some of their former popularity, according to Hedge Fund Research, Inc. The firm says assets invested in hedge funds increased by $100 billion in the second quarter, the first increase since Q2 of 2008.

Inflows on the Upswing

“The industry posted a gain of better than nine percent, the strongest quarter it has seen since going back to the fourth quarter of 1999,” Ken Heinz, president and CEO of Hedge Fund Research, told CNBC.

The strong performance was led by emerging markets, convertible arbitrage and energy, three of the areas that were down the most in 2008, according to Heinz.

And while investors still continue to redeem capital from the hedge fund industry, which had a total of $1.43 trillion in assets at the end of Q2, Heinz says they are doing so at a much slower pace.

As for fund of funds, Heinz said, "I think it's not quite as far along. You are still seeing higher rates of liquidations in the fund of funds industry."

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