Hedge Fund Hots
Assets are flooding into hedge funds, which just had their second best quarter in terms of net new flows on record.
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Despite mounting sub-prime mortgage woes, hedge funds are doing better than ever. In fact, the second quarter of 2007 saw hedge funds accumulate net new assets of $59 billion, making it the industry's second best quarter on record after first quarter this year, according to Chicago-based Hedge Fund Research (HFR). That brings overall industry assets to $1.74 trillion. Impressive numbers, but some hedge fund strategies are obviously faring better than others. Relative value arbitrage, for example, gathered $16.4 billion in net new assets for the quarter. Ken Heinz, president of HFR, says, “Investors enjoyed strong performance across the board in hedge fund strategies, but I think investors are allocating their assets in relative value arbitrage on the basis of the attractive risk adjusted returns.” Here's how some other strategies performed during the quarter.
