Despite producing an average return of 3.3 percent last year, the hedge fund industry is on track to surpass $3 trillion in assets this year, according to a new survey by Deutsche Bank.
"We have seen a doubling in assets under management since 2008," said Barry Bausano, president of Deutsche Bank Securities and co-head of global prime finance for Deutsche Bank.
"That's despite what's been pretty pedestrian performance."
The Alternative Investment Survey, set for release Tuesday and previewed by Bausano on CNBC's "Power Lunch," found that expectations for returns are much lower for 2015.
"That is healthy," he said.