Hedge fund assets reach new high of $3.1 trillion as positive returns trump outflows

• Hedge fund assets rose to $3.07 trillion in the first quarter even as investors continued to redeem capital from the industry, according to HFR.
• The firm said smaller hedge funds under $1 billion in assets did better in fund-raising compared to larger funds.

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Hedge fund assets hit a record at the end of the first quarter as positive returns overcame investor redemptions.

"Hedge fund capital increased to an impressive third consecutive quarterly record, extending the recent growth trajectory and following the most challenging year of capital withdrawals since post-financial crisis in 2009," Kenneth Heinz, president of Hedge Fund Research, said Thursday. "Sophisticated investors continue to strategically position for market trends that drive hedge fund performance. ... Funds that continue to demonstrate their ability to navigate these trends and generate strong performance will lead industry growth in 2017."