GLOBAL - Hedge funds gained record inflows of $38.2bn (e31.5bn) in net assets during the first quarter of the year, new research shows.
TASS Research, the research unit of Tremont Capital Management, said the gains marked a fourth consecutive quarterly record for industry inflows.
Reported flows showed that investors continued to favour equity-oriented strategies during the first quarter as they had in the previous two quarters.
In the fourth quarter of 2003, investors added a net $26.8bn in assets to cap off the industry’s best growth year during which it captured $72.2bn in net inflows.
Robert Schulman (pictured), co-CEO of Tremont Capital Management said: “The brisk inflows into hedge funds continue unabated.
“Several significant trends are driving this phase of the industry’s growth. Those include a continued strong interest by institutional investors such as pension funds and endowments to make a first or additional investment to alternative strategies.”
For the third quarter in a row, the three most popular strategies based on net asset inflows were long/short equity, event driven and global macro.
The same three strategies, which were the most popular for all of 2003, received net inflows of $8.2 billion, $6.9 billion and $5.5 billion during the quarter and accounted for approximately half of the quarterly net asset flow.
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