Hedge funds: Investors seek bigger allocations despite fall

Despite negative returns in 2008, hedge funds should bottom out this year and look attractive to many investors compared with other asset classes. Neil Wilson reports on the latest data.

In association with Hedge Fund Intelligence

Assets in global hedge funds dropped sharply during 2008 to finish the year at just over $1.8 trillion, according to HedgeFund Intelligence’s global database. It reveals that the fall in net assets occurred almost entirely in the second half of the year, with a drop of 32.3% from $2.697 trillion at the end of June to $1.826 trillion at the end of December. Assets stood at $2.646 trillion at the beginning of 2008.

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