Hedge fund managers yesterday predicted a wave of investor cash would flow into the industry in coming months after evidence of the best quarterly performance by many funds in a decade.
Total assets under management by the world's hedge funds rose more than $142bn in the second quarter of 2009, reflecting the strong performance of the industry as a whole, according to figures published yesterday by Hedge Fund Research.
Outflows from clients slowed to $42bn, from a peak of $152bn in the quarter following last year's collapse of Lehman Brothers, and are expected to turn positive in the coming months as investors begin to reallocate funds to the industry.