April 23, 2006

Hedge Funds See a Bright Beginning

According to a recent study conducted by Hedge Fund Research, Inc., hedge funds have seen an inflow of $24.04 billion, or 2.17 percent, in the first quarter of the year. This follows a fall in the inflow towards the end of last year. HedgeCo.Net reports:

Total industry assets stood at $1.182 trillion dollars at the end of the period. Funds of Funds (FOFs), which had also experienced negative flows in 4Q 2005, saw inflows of $6.4 billion in 1Q 2006. Hedge funds performed well, with the average fund up 5.85 percent in the quarter, according to the HFRI Composite Index, which represents the best quarterly returns since 2Q 2003.

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