RYE, N.Y. (HedgeWorld.com)–Hedge funds gained US$6.8 billion in new assets in the third quarter bringing net inflows to the asset class to US$17 billion for the year through Sept. 30.
According to the research compiled by Tremont’s TASS Research*, hedge fund investing is picking up again after a lackluster first half of the year, which showed a slowdown in asset flows from the record growth of 2001. Long/short equity funds and convertible arbitrage strategies lead the second quarter growth with US$4.57 billion in new assets.
Investors continue to be attracted to long/short equity, fixed-income arbitrage and event-driven strategies. Long/short equity attracted the most assets with US$2.1 billion, while event-driven and fixed-income arb followed with US$1.7 billion and US$1.1 billion, respectively.
According to Tremont officials, the reason for positive inflows relates to increasing interest from institutional investors. “There continues to be a steady stream of interest from a variety of institutional investors who are looking for ways to allocate capital to strategies uncorrelated to the major markets,” John Hock, Tremont’s director of global sales, said in a statement.