October 21, 2006

Hedge Funds’ Assets Rise

-- By Pushpa Sathish, Staff Writer

With all the money pouring into the hedge fund industry, the total value of assets under management rose to $1.34 trillion, according to a recent report from Hedge Fund Research Inc. (HFR). The Chicago-based firm said that more than 50 percent of the money was invested in relative value arbitrage, equity hedge, and event-driven strategies. The amount of money flooding the coffers of hedge funds does not seem to reflect on the performance of the funds though, said HFR president Joshua Rosenberg. Though the Q3 performance was not up to the standard, the strong investment showed that investors were probably considering the long term scenario, he added. Business Week reports:

On average, hedge funds returned just over 1 percent in the third quarter, putting performance this year through the end of September at 7.1 percent. The best hedge fund performers were convertible arbitrage strategies, up 2.74 percent in the third quarter and emerging markets strategies, up 2.6 percent in the period.

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